I was hosting an open house yesterday and had a couple come through. They said they had been looking for several months and were hoping the housing prices would have come down. They said that with all of the talk about the slow market they thought house prices would drop and they could get more house for there money. I went on to explain that in our market we are still experiencing appreciation with our properties and just because the market is soft don't expect builders to be giving houses away. I went on to let them know that many of the products in a new house are petroleum based (i.e. carpet backing, vinyl floor backing, felt paper, shingles, as well as many plastic products) not to mention the price of steel and copper. I told them if they were looking to buy a new construction product, that builders would usually give more upgrades than cut prices. If you are looking for someone to cut the price substantially, you might want to look at older homes.
There is alot that goes into the price of a new home. You have everything from developement cost, material cost, labor cost. Each of these have many different variables depending on what area you are in.
It amazes me that when the national media talks about the housing market everyone thinks that is the case for every market. While some markets are softer than others, we are not all in the same situation.
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