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That's the selling price. It doesn't say anything at all about construction costs, but more about the housing market in general.
by 9cb14c1ec0 2y ago
That's the selling price. It doesn't say anything at all about construction costs, but more about the housing market in general.
- janalsncm 2y agoI disagree. I checked Georgetown, TX for comparable homes in the area (3b/2ba, ~1500 sqft) and it seems many houses are going for under $400k. But “Dyce” sells for $470k. https://www.lennar.com/new-homes/texas/austin-central-texas/georgetown/wolf-ranch/genesis-collection https://www.lennar.com/new-homes/texas/austin-central-texas/... Just as a random example, this is a comparable house (bigger in fact) and selling for $365k. https://www.redfin.com/TX/Georgetown/346-White-River-Dr-78626/home/144199509 https://www.redfin.com/TX/Georgetown/346-White-River-Dr-7862... I think this is a really cool technology but it’s not competitive yet.
- tantalor 2y agoYou misunderstood. If I can build a house for half the cost, that goes to my profit margin, not a discount for the buyer.
- janalsncm 2y agoAs Jeff Bezos says, your margin is my opportunity. So yes, it would drive costs down. But we aren’t even there yet because the houses aren’t being sold because they’re too expensive. Another way to pad your profit margins would be to raise the asking price of the $360k home by $100k. There is a reason people aren’t doing that.
- dghlsakjg 2y agoThat’s not how real estate works. Amazon deals in commodity goods that are easily substituteable. Housing is different because every single one is unique (by virtue of location) and also incredibly scarce (again, location). Housing markets tend to strongly fight any tendency towards underpricing. When a house is underpriced, buyers will get into a bidding war and push the price back into the fair market price.