New Homes Price's Rising

The Phoenix Business Journal reports on the continued frenzied pace of our rising home prices and points to buyers willing to pay whatever price is asked to get into a home. Builders are raising prices to slow demand, and because the cost of almost everything that goes into a home, including land, lumber and even fuel costs are rising. "This is the twilight zone", said Fulton Homes President Doug Fulton. "This is the most unusual and strange market." Builders need to stay on top of the situation and continue limiting price increases because that generates fear among prospective buyers that if they don't buy now, they could be forced out of the market by rising prices, Fulton said. Prices of new homes have increased so fast in recent months that some buyers, paying only 5 percent down, "had $100,000 equity the day they closed escrow. It's crazy," Fulton added. More...