New Home Prices Have Hit Bottom

How did we get here? The two big homebuilders in Central Ohio rushed to secure land to continue their growth. At one time, one of them, had around 20,000 lots or "blanks" (a blank is an undeveloped lot). That was 8-10 years of inventory at their highest production years ever. They pursued more and more land and pushed prices much higher than the market could really handle. So lots in the "sprinkler" communities that are one ring out from the suburbs - Johnstown, Delaware, Commercial Point, Lancaster, etc. - were actually priced higher than lots were 5 years ago in the prime suburbs. Land and lot prices have returned to true market value - maybe even lower!!! Materials and labor have decreased to unsubstainable lows. Increases are right around the corner. Builders have slashed margins to razor thin amounts to move inventory. This is a great time to build a home!!!!