SndChaser
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The builder sinks money into the project well before the actual construction phase (they have to buy the land, have costs associated with holding it, they spent money on planning and approvals). Even if the end product will be worth less than it was worth in the not too distant past, it's still the best means to recover their investment (i.e. it will yield a better return to the developer than trying to sell the uncompleted project, or sit with the carrying costs until the market recovers). |
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kearneyconsulting
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They know that people still want and need new housing. Foreclosures are a side issue with builders unless they are doing the financing themselves. |
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Bottom Contributor
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B/c this is how they make a living. They are still making money. People will always buy houses even when the market is bad. Around here the market is as high as it has ever been. |
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d0ran1
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Prices on material are lower then usual. Thats a big reason |
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Susan M
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Builders build. That's their job. There are still funds available. People who are able to build custom homes will still build them. Construction hasn't slowed where I live. It is federal dollar driven in large part. I have no idea who is moving in. |
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kurts99ford
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Builders build! They get their money when they sell! When their homes stop selling they will stop building!
Supply and demand! Basic business principal! |
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novastarbanker
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Builders will build through any "season". Just because there is a high default rate right now. there are still a lot of TRULY qualified buyers out there who want to buy a house. This is their business, and they don't know more than anyone elsxe, they want to work and make money just like everyone else. You can be guaranteed that the approval process is harder, and the people they are qualifying will be more of a sound buyer than they have been in the past years. |
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Psi Chi member
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People are still buying them. Especially where I live.
Foreclosures will also be sold to other buyers. The bank will make their money still.
The only ones losing out are the original buyers who will have their credit ruined and be without their homes. |
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Alterfemego
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Not really. Some builders, the large corporation builders have to keep building because in most cases they have already paid for the materials. Some end up deeply discounting the homes to get them sold, there in depressing the market in that area. Some smaller builders are in trouble because they continued to build and now are priced right out of the market. They have inventory that hasn't sold, and they can't reduce the price enough to move them. |
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afischer
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You have to be very careful with foreclosures. It could be foreclosed by 1 debtor while others have a secure interest in the property. Thus you would be purchasing the foreclosure debt and all the others that are listed when you do the title search on the property. Plus new homes have a warranty and there could be thousand dollars of un-seen problems with a foreclosure. |
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madbaldscotsman
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The market will fall soon. Don't buy just yet. |
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