I read on MSNBC that new home builders are basically crying about the market. I do not know about the rest of the country but since the early 80's here in AZ it has always been cheaper to buy a new home that purchase a used one.
Until now...In 06 the new home builders were having a hay day. They were having raffles to see who could buy a new home. People would go to a new housing project and slap down earnest money that the Builders collected all week. Then every Saturday morning all of these buyers had to show up and the new home builders would draw maybe 6 names out of a fish bowl to see who could get one of their precious houses. They did this just to drive the prices through the roof...
New home sales have always set market price for used homes in AZ. Well, new home prices have not fallen like prices on used homes in the last year. The home builders are trying to keep the same old prices they had on a house a year ago and throw in extras , like a car....No joke, some builders have advertised they will throw in a new car if you purchase one of their houses....
Well let them sit on these houses if they refuse to lower prices. If they could give a 30K car they could lower the price by 30K...But they don't want to do that because all of those people that bought the same model house last year and paid 30K more for it will be crawling up the builders Butt....and he does not want to admit that last years prices were inflated...Let them sit on them...Most of the workers were Illegals anyway and they have almost all gone home.
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