According to a recent survey, 51 percent of new-home communities raised prices last month, the highest June uptick since 2013.
John Burns Real Estate Consulting reports that the share of new-home communities that have increased their prices is on the rise, from 38 percent in June 2014, to 40 percent in June 2015, and 43 percent in June 2016.
The latest survey found that 45 percent of respondents kept prices flat, and 4 percent lowered prices.
Rising labor and material costs, along with continued sales strength across multiple buyer segments, are among the reasons why builders have pumped up their prices.
Each month, the survey [Jody Kahn, senior VP] has managed for the last nine years tells the story well. Builders raise prices when they feel confident about their sales pace and employ incentives or discounts when sales slump, which reduces the net home price.
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