BREAKING NEWS! Dallas Fort Worth and Texas-based home builders have had record business in 2020 and now in 2021, but not record profits as inflation has significantly minimized contractual profits estimated to be in the Billions of dollars. If buyers today think they can stop runaway housing inflation train by contracting to build from an empty lot months before closing, then they should know those days are now quickly coming to an end with an ever-growing list of DFW new home builders suspending build contracts in an effort to stop losses associated with monetary inflation.
Today, builders are turning away from traditional "build to suit" contracts on empty lots to contracting when new SPEC homes are ostensibly complete with known cost numbers to base home pricing. The new "Spec Sale only trend" is expected to spread to most DFW Homebuilders absent possible acceleration clauses designed to pass unforeseen material cost increases to home buyers during construction.
Now the really crummy news - emerging new home bidding wars. Some area home builders are contemplating offering their sale-ready SPEC homes on a buyer bid-basis, much like with preowned homes for sale. Obviously, this will affect the price of a new home, which has already seen unprecedented price inflation since early 2020.
It seems rather clear that home builders in general, are keen to stop losses and recoup 2020 contract profits losses to inflation by potentially offering ready new homes for sale to the highest bidder. Time will tell.
Buying a new home when housing is in short supply, is no small job. That is where new home Realtor® specialist Mike Askins 214-727-3686 can help provide the critical know-how that can help shorten the time it takes for you to complete your home-buying mission.
Contact Mike by Filling Out the Form Below.
Mike Askins, Realtor, Owner ARG
Got questions for Realtor Mike? Call me at 214-727-3686 (mobile)