Buildings Increase Prices
Builders nationwide are initiating higher prices for new construction. A recent survey distributed by John Burns Real Estate Consulting Inc., saw twenty-four percent of 231 builders citing raised prices for December 2013. Those builders who lowered prices fell 8 percent in December 2013, a significant change from a 12 percent increase of prices in October 2013.
Early 2013 saw builders surveyed indicating raised prices, particularly in markets concerning California and Arizona. Those states saw double-digit price increases from previous 2012 prices. However, prices did not rise as aggressively as interest rates rose over the summer months in 2013. Of late, interest rates have remained idle, with no increases in sight, increasing builder confidence.
An all-time new-home price average of $340,000 for November 2013 is a result of the upward economic climate. Prices rose seven to eight percent for the whole of last year, and analysts predict an even greater rise, anywhere from eleven to twelve percent for the remainder of 2014.