When I watch HGTV shows that feature homes with prices that shock me. A $200,000 home in Delaware costs $60,000 where I live. Why the big discrepancy? Is it because land is so scarce in those areas?
2006-09-14 17:01:18 · 12 answers · asked by soulblazer28 2 in Home & Garden ➔ Decorating & Remodeling
Just so you know I live in south texas and is one of the fatest growing areas in the US. You losing your job? All the jobs are moving down here.
2006-09-14 17:19:13 · update #1
The jobs in the area. Caifornia residents may have a higher income and cost of living so houses will be higher. New Jersey may have a lower cost of living so house prices will be lower. But I agree, house prices are ridiculous. I wouldn't want to have to purchase another house right now.
2006-09-14 17:04:34 · answer #1 · answered by Chick with pets 4 · 0⤊ 0⤋
cost of land
cost of delvelopement, with many cities strapped for cash the permits and fees added to new contrstuction are huge.....
cost of material.. material have risen 40% plus i nte last 2 year, some ( like copper ) more than that
cost of labor.. the skilled labor pool is tight for construction.. with few apprenticeship programs, good labor commands top dollars
cheap money.. since the fed drop the rates to stimulate the economy, the money supply came cheap, thus sellers raised there prices knowing that more buyers would not qualify with risky loans, the actual amount of house did not get bigger, just the debt on the very same house, also the flip set drove up prices dramtically with bidding wars..
you are now seeing the start of the housing bust ( really in some areas ) as home prices adjust downward to meet local demand, the fed rasiing the rates and the 5 year interest only loans now converting over to ARMs have further made some people in a panic sell mode. the myth that there is a scarecity of housing is just that. the supply has dropped a bit, but no enought to quantify the pricing jumps. the price jumps were brought on by realtors and loan broker who did not care one bit about the american dream, all the cared about was the commision on the sale and the commission on the sale. you next see a weeding out of smaller loan brokers and realators as the industry does a shake out typical of these boom and then bust cycles. Ameriquest, one of the biggest, has allready laid off a few thousand of it's employess as it busniess has dramticaly slowed down to the shrinking pool of qualified applicant for home loans.home stocks from major home builder ( KB Homes, Barret etc.. ) have also dropped as investors do not see how they will turn much of a big profit in trying to sell their big developments, indeed major home builder nad flipper alike now have to make concession as bidding wars are pretty much over.
2006-09-14 17:14:56 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Land and space. Location, location, location. Heavily populated areas increase prices for a ton of reasons, supply and demand is just one of the major reasons.
A $200,000 house here in Maryland will get you a 3 story single house with a basement and 2-3 car garage in a good quiet area. It might be 10-20 years old. The same price could get you a Mansion in Alaska.
2006-09-14 17:12:02 · answer #3 · answered by always under siege 5 · 0⤊ 0⤋
Real estate price is based upon the realtors appairsal. The check you home value by comparing it with similar models in your area. It can be priced more because of different options, nice neighborhoods, material inflation, gas prices and the list can go on and on. If you actually built the same house in each area (considering you lived in a rural area) the house shouldn't be no more than about 50,000 different. 200,000 is about a 2500+ square foot home in my area with no extras.
2006-09-14 17:15:26 · answer #4 · answered by Haley B 1 · 0⤊ 0⤋
No, because no one wants to live where you live. Probably no decent jobs in your area. Homes in San Diego and parts of L.A. are $1,000,000 for the same house as in Delaware. That's because everyone wants to live there, great economy, beautiful weather, coastal region, and upscale living standards. Studio apartments in Manhattan are about $1 million, too. It's location, location, location. It's all a matter of being on the right side of the market.
2006-09-14 17:10:31 · answer #5 · answered by Anonymous · 0⤊ 0⤋
It keeps going up because the area is overated, and the realtors kno that ppl will pay that much. Where do u live, so I can move there
2006-09-14 17:03:33 · answer #6 · answered by ThAt Qt WuD B Me 2 · 0⤊ 0⤋
No its because bank like the business, tend to capitalize off of areas that are consider hot spots.
2006-09-14 17:11:14 · answer #7 · answered by * Deep Thought * 4 · 0⤊ 0⤋
price of the land. same house twenty miles away costs $100,000 less in the middle of a farm field.
2006-09-14 17:27:52 · answer #8 · answered by zocko 5 · 0⤊ 0⤋
Land cost and labor and not as much but material cost vary too.
2006-09-14 17:02:45 · answer #9 · answered by Stan the answer Man 3 · 0⤊ 0⤋
A combination of scarcity and demand.
2006-09-14 17:02:13 · answer #10 · answered by Anonymous · 0⤊ 0⤋