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Old 01-07-2021, 11:47 AM
 
3 posts, read 4,782 times
Reputation: 20

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Quote:
Originally Posted by srick123 View Post
I would add area in and around Deerbrooke community/ Savannah Ranch.
Middle and High school right inside the neighborhood.

Going to be cookie cutter homes for the budget you have. Right now inventory is at all time low and I would wait till mid spring to see if there are more homes in the market. Crazy bidding wars and mark up by builders.
Exactly , that's what I discovered after going through all these neighborhoods that :

Builders are hoarding lots and marking up prices almost every couple weeks.
High demand and low inventory continue to dominate the sellers market
Houses which were sold by builders for around 300-32k in Nov/Dec are now being marked up to around 400-425k.
Not sure if this will last or how long if it will last and if its justified to pay premium or just wait for more inventory to come up as there is no dearth of land/lots
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Old 01-07-2021, 12:08 PM
 
171 posts, read 185,495 times
Reputation: 149
Quote:
Originally Posted by Vagabond1001110 View Post
Exactly , that's what I discovered after going through all these neighborhoods that :

Builders are hoarding lots and marking up prices almost every couple weeks.
High demand and low inventory continue to dominate the sellers market
Houses which were sold by builders for around 300-32k in Nov/Dec are now being marked up to around 400-425k.
Not sure if this will last or how long if it will last and if its justified to pay premium or just wait for more inventory to come up as there is no dearth of land/lots
Woah. This seems crazy. I was expecting 10% increase but this is just another level of hoarding and markups. not sustainable for sure.
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Old 01-07-2021, 02:46 PM
 
Location: Avery Ranch, Austin, TX
8,977 posts, read 17,449,279 times
Reputation: 4000
Quote:
Originally Posted by srick123 View Post
Woah. This seems crazy. I was expecting 10% increase but this is just another level of hoarding and markups. not sustainable for sure.
It's pretty real. One floorplan we liked went from $325K to $399K in one swoop...two weeks after we started looking. I balked at the $325 starting point; but maybe should have pulled the trigger.
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Old 01-07-2021, 08:01 PM
 
7,742 posts, read 15,040,093 times
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during the dotcom boom this was happening. I signed at 365K but a few months before it was 335K and a few months after it was 395K.
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Old 01-07-2021, 08:04 PM
 
171 posts, read 185,495 times
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Quote:
Originally Posted by 10scoachrick View Post
It's pretty real. One floorplan we liked went from $325K to $399K in one swoop...two weeks after we started looking. I balked at the $325 starting point; but maybe should have pulled the trigger.
May I know which community is this? Just curious.
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Old 01-07-2021, 09:52 PM
 
Location: Avery Ranch, Austin, TX
8,977 posts, read 17,449,279 times
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Quote:
Originally Posted by srick123 View Post
May I know which community is this? Just curious.
Crystal Springs...Reagan/Crystal Falls Pkwy("behind" Cold Springs)
You drive through the neighborhood to access the new Lakewood Park(City of Leander).
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Old 01-10-2021, 12:16 PM
 
28 posts, read 23,209 times
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The market is just plain crazy. Was talking with a sales agent with a new home builder and he said he had a couple in that offered on a preowned home and the house already had 85 other offers. Also mentioned a realtor friend who was a part of a new development opening, the client camped out for 2 days just to be first in line, and apparently after they sell 2 or 3 homes, they have a mandatory price increase of $10000, so prices increasing while people are in the waiting room so to speak.
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Old 01-12-2021, 08:57 AM
 
Location: Dallas
31,290 posts, read 20,628,205 times
Reputation: 9324
Quote:
Originally Posted by Vagabond1001110 View Post
Builders are hoarding lots .......
Why do you think that?
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Old 01-12-2021, 11:58 AM
 
Location: Holly Neighborhood, Austin, Texas
3,982 posts, read 6,696,604 times
Reputation: 2882
Quote:
Originally Posted by Roadking2003 View Post
Why do you think that?
I think its more like they don't have the capacity to build them as quickly as the market is demanding. There would have to be collusion if the hoarding theory was valid and that would be very hard given the number of builders in the Austin area.
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Old 01-12-2021, 10:12 PM
 
171 posts, read 185,495 times
Reputation: 149
It's not really "hoarding" in the plain sense. But all the builders follow this methodology even before this whole COVID housing craze started. They release the lots in phases. During the first phase they release few lots and as soon as few lots get sold in the first phase, they increase the price by 5k and release the next set. Within a single "phase" itself you will see few price increases.

Whats happening now is that the no of lots released in each of these sub phases are reducing. Say it used to be the case that they increase base price value after 10 lots being booked. Now that 10 has become 5 and the rate of increase of base price has also increased quite a bit. Interesting thing is that people are willing to pay so much premium now. It is not only the base price that gets increased. It also includes increase in the lot premium/ upgrades cost etc...

Overall every 3 to 4 homes being sold by a particular builder in a community results in uptick of the price of the home across all floor plans.
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