Comments by "Jeffrey Deuitch" (@jeffreydeuitch2146) on "CoreLogic: New Home Construction OVERVALUED" video.

  1. Remember, the cost of construction in a,planned development also need to go to paying the debt involved with all the cost of developing the land, taxes infrastructure and all the things that must be done prior to building the 1st house. Often times this was paid for by a municipal bond and payments for such can be on property taxes. In Florida this is referred to as CDD fees. Once a house is sold then the new owner pays a small portion. Prior to that the builder is paying. This can a couple hundred lots in an early stage development. There is much more to the builders spread than just the spread on an individual house.
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  2. In re ent times in our area resales have commanded higher prices than a new build of the same model from a builder. This is presumably due to the 8 to 12 month delay for construction for the new Build. I have seen this repeatedly over the last 2 years in our area.
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  3. I think you might want to speak with a few builders reps to get an idea of actual increases. I think you might find that the cost increase is a lot more than 12% or so.
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