patrick.net

It is not just the hard cost of the materials - how much labor did you put in ? If I was really good at construction activities and was willing to put in the time it may be a nice payoff. In the go go days the flippers could hire someone with their labor rates and still make a killing. I agree with you that people are willing to pay for something already done and move in ready. Not only that...if you buy something move in ..you are financing it for 30 years versus buy the dump and put in your own money (not 30 year financed money unless you do a HELOC and then refi) and time and inconvenience.

Only when the restructuring gets stable and the pricing reconciles and reaches an acceptable and affordable level, the industry is expected to recover. With the housing market in great trouble, moderately-priced apartments have become the core buy.

People who want to buy new homes are also refraining from the risk as they are unsure of their employment in the coming months. Though the housing market is becoming more affordable than before, the sales figures have not bounced back. With high job losses, house owners are unable to pay back the loans which they thought they would repay through their fat pay checks every month. In spite of efforts taken by the government to alter the loan repayment terms, the anxious borrowers are still unsure of their repayment capabilities. Hence, foreclosure rates are still on the high and the lenders are pricing them aggressively to increase the sales of these homes.

Read More: http://www.housingnewslive.com

350K to 500K for some hardwood floors and other touch-ups is a truly insane markup. I guarantee it's all Home Cheapo hardware and hasty craftsmanship - maximized profit is the principle here, after all. A better question might be, how much would it cost to build the same home from scratch. I think you will be surprised.