Home Builders Raise Prices

According to a recent poll by John Burns Real Estate Consulting, more builders are now raising their prices instead of lowering them.  This seems to coincide with the recent reduction in inventory levels.  The $8,000 tax credit and extremely low interest rates have helped many California residents who could not afford before experience the dream of home ownership.  The poll was conducted with 62 California home builders.

Affordable terms and financing have helped to stabilize what was before a free falling real estate market.  The report did mention that even though we are in the process of stabilizing a price point, an increased number of short sales and foreclosure could create some downward pressure.

For home shoppers that are all to familiar with submitting offers over asking price only to be outbid, an increased number of homes on the market could be just what the doctor ordered.

MC