Builders holding off on final price quotes for buyers

By Mike Sunnucks | Rose Law Group Reporter

Home buyers are already facing plenty of challenges with supplies tight and real estate prices rising across metro Phoenix.

Now, the home buying process is getting a little more complicated and uncertain.

Some home builders are holding off on quoting buyers’ final prices on homes as well as releasing new homes for sale until closer to build dates.

That is so they can have a better handle on pricing especially with the inflationary pressures on raw materials as well as labor, according to Steven Hensley, advisory manager for real estate research firm Zonda.

“They’re starting to inventory homes and they are not actually releasing them for sale until they’re closer to building them,” Hensley said.

Home prices have been rising with high demand throughout much of the COVID pandemic spurred by low mortgage interest rates.

That is zapped supplies of new and existing homes and is coupled with higher prices for materials.

Hensley said some home builders have already limited the number of sales per month. Now, they are adjusting the timing of final prices for new homes in order to better account for their back end costs. “The price is not locked until the purchase contract is signed,” Hensley said.

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