Home prices increase at fastest rate in 34 years in December, but rising mortgage rates remain ...

[inthewind21]

18. Simple Greed is a HUGE part

I work in the construction chain as well. As for rising costs, yes those exist. However, new construction neighborhoods are bid out months and years ahead. There's not a contractor out there that waits until construction starts to purchase the materials needed. So the rising costs BS being touted is just that to a large extent. A planned new construction neighborhood that was approved in 2020 and will take a year or two to complete was bid out and pricing locked way before the "oh it's price increases but, we're making record profit" BS started. New construction contracts now come with a clause. You contract with me today to purchase for 400K, it will take me 9-12 months to complete construction, but, if prices rise during that 9 months you, schmuck buyer, agree to cover those costs so your 400K house is now 480K." Even know joe contractor got bids 18 months ago and pricing was locked for that job And idiots all over this country are agreeing to this insanity and signing these contracts with a clause. And paying 5K in good faith at signing. and Overbidding stupid amounts to get the house. Without knowing what the actual price of said house will actually be until completion. And if you can't afford the new price, or don't want to afford it, yeah, you can walk away, but you'll be leaving your 5K behind. And the next schmuck in line will make the purchase for 525K.