by Phil Hoover, Real Estate Broker

Builders Facing Severe Lot Shortage

I’m currently working with several build-job buyers and builders are telling me that their #1 challenge these days is finding an available finished lot.

You’d think our market would be awash in lots following the downturn of the past several years, but that’s not true.

Most subdivisions have no available lots and waiting lists for their next phase.

Lots in foreclosed subdivisions have mostly been absorbed.

There are numerous new developments going in, especially around Eagle, but those lots will be created on recently-purchased land acquired at today’s higher price.

And, development costs for infrastructure are increasing on top of higher land costs.

My best guess is that lot prices are about to take a big jump in the near future as those new lots come online.

Those higher lots costs will inevitably lead to higher home prices.

If you’re thinking about building, better get going on it this year!

 

May 20th, 2013 Posted in Inside Real Estate Print This Post Print This Post

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