Dive summary:
- Part of the basis for rising home prices for new homes is some builders' decision to build fewer homes than they could sell and to collect more for the available homes as a result.
- New federal data showed the median price of a new home last month was $271,600 and the average price was $330,800 – and those were both records.
- Part of the reason for choosing price over volume is that builders are paying more for what developed lots are available, for labor and for materials.
From the article:
"There was a time, as recently as six months ago, when builders were scrambling to do anything they could to sell a home," said David Rice, a former executive at Pulte Homes and now president of New Home Star....
