[Oneway]

Originally Posted by olecapt

It is getting late. Over the last year the builders have closed 4000 more homes than they have pulled permits. Estimate are less than a six week inventory and dropping rapidly. There may be a few around at the end of the year but they are likely dogs. Then again dogs often have high incentives...and ones persons dog is anothers dream house.

I would in general recommend working never lived in or lightly lived in resales...probably a better deal as some of those people get squeezed. On those the incentives will be in the price.

Olecapt, pardon me for not undertstanding some of your words after "...dropping rapidly." . Can you explain this in plain English? Thx

[olecapt]

Originally Posted by Oneway

Olecapt, pardon me for not undertstanding some of your words after "...dropping rapidly." . Can you explain this in plain English? Thx

Standing inventory is homes which were built without a committed buyer. Today the builders do not start a home until they have a contract in hand to buy it. Last year they started a number of homes without contracts intending to find a buyer while the home was being built or shortly after it was completed. Once such a home is completed the builder has very strong motivations to sell it....he is basically making the mortgage payments.

The number of homes remaining in the standing inventory is getting smaller as the builders sell off those homes and don't build any more. It is expected that the number of such homes will get close to zero in the next months.

There are a few additions...homes built to contract where the buyer was unable or unwilling to complete it. But these are a very tiny percentage of the homes built.

So quite soon now the builders will have almost no homes completed without buyers committed to buy them. And, when that happens, the unusual deals on such homes go away.

"dog" is simply a description of a home that won't sell.

[Oneway]

Thank you for the explanation

[azsk8fan]

Considering the calibre of 'skill' the laborers who are building these new homes these days have (or don't have) you might want to consider purchasing an older home that was built back in the days when a carpenter was more than just an illegal with a hammer and nail in his hand. I work in a gated community where the homes are still being built and go for over 600,000 and yet on a daily basis I see the builder send in 'real' skilled people to correct (under warranty) all the shoddy work that went into building these homes to begin with. There was a time was finishing concrete was a real 'art' much more than a guy with a trowel and some knee pads - same for carpentry and just about every other aspect that goes into building a home - now it's just a bunch of illegals who show up with hammer/nail and calling themselves carpenters - roofers, dry-wallers etc etc you name it - gone is the day when these different 'trades' were actually done by SKILLED, trained personnel - now the house is being framed, concrete being poured, walls being put up, roofs being installed (etc etc etc) by anyone willing to work for $9.00 an hr. and the end result is that the new homeowner can expect to reserve one bedroom for the warranty man who will be there daily to fix this crap they call a new home.

[olecapt]

If you check out the crews doing the skilled task for a contractor building his own million dollar home you will find most are hispanic. The framers, roofers, concrete guys, wallboarders in Vegas are now Hispanic. And the labor rates start at 15 an hour and go up from there. Get over it. The language of home construction is Spanish.