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Old 01-16-2009, 07:00 AM
 
84 posts, read 342,594 times
Reputation: 27

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I see that Taylor Morrison has increased their base prices on their homes last week. How can this be possible in this market? Are they just trying to increase the price and show that they can give discounts?

I have been watching their price since last 6 months and I can't imagine any builder can increase the base price now....
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Old 01-16-2009, 07:28 AM
 
6 posts, read 16,771 times
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I also want to know the answer to this. I've been watching Cinco SW Trendmaker's prices for a while now and noticed all their base prices went up 9K!

Last edited by mchead; 01-16-2009 at 08:08 AM..
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Old 01-16-2009, 07:50 AM
 
26 posts, read 93,015 times
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David Weekley also did this in Bridgeland in December and increased the sticker price on inventory homes in January. It's a shell game.
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Old 01-16-2009, 07:56 AM
cla
 
898 posts, read 3,307,151 times
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Some areas are still selling - maybe not the numbers from a year ago, but still selling enough to be profitable. And with interest rates down to 4.75%, this is a good time to buy. I know if I hadn't just bought a new home 1 1/2 yrs ago, I would be looking to buy now.

And then there is also perception. If you start dropping your prices, it looks like you are struggling, therefore desperate.
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Old 01-16-2009, 08:15 AM
 
Location: Katy, TX
1,288 posts, read 4,935,739 times
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I know several people in Cinco that have recently decided to upgrade because of the low interest rates, and I know houses in Cinco SW are still going up at a pretty good clip.
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Old 01-16-2009, 08:19 AM
 
Location: San Antonio-Westover Hills
6,884 posts, read 20,399,779 times
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"Supply and demand", I think, is what that economic principle is called.
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Old 01-16-2009, 08:19 AM
 
166 posts, read 899,102 times
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When they increase the base price of a home it only effects the buyer that wants a dirt sale (meaning they want to pick the lot, the floor plan and all the options from the beginning). The homes that are already built in inventory aren't affected. Seeing that taylormorrison has a handful of homes sitting awhile in inventory, I imagine they want to move those first and ASAP. Also raising the base price also gives the illusion that the buyer is getting a better deal when they allow for a "larger" discount.
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Old 01-16-2009, 08:40 AM
 
Location: Charleston Sc and Western NC
9,273 posts, read 26,486,142 times
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It may also mean they are cutting out the spec building and trying to profit off pre-sales only.
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Old 01-16-2009, 08:45 AM
 
200 posts, read 1,066,889 times
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or maybe theyre giving used houses a chance to sell. are there any?
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Old 01-16-2009, 10:12 AM
 
Location: Austin & Houston, TX
1,461 posts, read 5,595,702 times
Reputation: 425
They do this to offer more of a discount when you come to the table to negotiate. The cost of raw materials has gone up and this may be the second reason as to why you have seen an increase.
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