Quote:
Originally Posted by justjim
A friend of mine closed on his home just six months ago in TV. He "swears" that prices on an exact Designer home like his has gone up in price 30% in the last six months. He says, "The Developer is gouging people".
$250,000 Designer home with a 30% increase would now cost $325,000. My friend is convinced this is true and I have no reason not to believe him as He is not one to make "things" up. I have no valid data to back him up.
Assuming this is correct, is the Developer gouging people on new homes?  |
A really poor choice of words. Gouging occurs when someone sells a vital commodity at exorbitant prices, usually after a disaster. For instance, someone selling bottled water at $20 a bottle after a hurricane. No one forces anyone to buy a home here. In the real estate market, supply and demand are the factors that matter most. The developer would be a fool to sell his homes for less money than they are worth on the open market.