Rising Prices!

[Kris]

Is it just me or has the prices of Manufactured Homes risen in just the past few months. I just saw the Silvercrest M17 at a dealers website for over $220,000!

Maybe being compared to a site built home that is he same size, I don't know.

Is this price still cnsidered affordable housing?

Let me know if I'm wrong.

[rmurray]

I am not familiar with this model or this manufacturers pricing..but you are very correct...prices have risen and are continuing to rise mostly because of Katrina...Although you are nowhere near the Gulf coast..The devastation is so bad and rebuilding so vast there it is sucking up building materials by the rr car load...there is a large shortage of many building supplies now nationwide....I suppose you can say we are all victims of Katrina in some ways...From all we here..it will only get worse in the next few months..Worse than price increases..interest rates have risen at least 1 full % in the last 90 days..Adding tens of thousands of dollars to every home over the life of the loan..One thing is for sure...BUY NOW before it gets worse....Go for it soon..

[JimR]

Yes I am in the process of buying a Hallmark was waiting for the weather to clear before placing the order at the factory. On Wednesday am I got the call from the dealer buy now today or the price will go up 2%. I had the order placed will get the home on May 7-9, 2006. I do hope the rain quits.

JimR

[Kris]

Thanks Murray, I'm glad it's not only me and I 'm not going crazy!! Iknow there are trends in the prices of homes. People are saying that home prices are going to be going down and interest rates up. But I am not at all familiar with this. Also, I just saw a dealer on the web named Hallmark. I looked in the Grissim book I have which was published in 2003. Are the mentioned in his new book at all?

Do I need thenew book, if so I will get it if it is more information or updated info. in it. Please let me know. Also what other books are there out there? I know there are quite a few and no matter how hard an author tries, they can not cover everything, so I am looking for a book that will complement Grissim's. You know maybe the other author may have something different that I can put together with Grissim's.

Thanks Murray, You are such a well of information!!!

[Mac]

I was surprised by the prices I saw at the Salem (OR) show last month. The house we bought for $80K two years ago would cost about $120K today.

[rmurray]

You seem to have gotten a lot from Grissom's book..he does have a new one that might well compliment the one you have.....Also in the bookstore here you will find a book by Randy Eaton...It is a little older than Mr. Grissom's..but is written from a different prospective..Mr. Eaton was an experienced manufactured home sales person then moved on to be an author...Mr. Grissom was an accomplished author who bought a home..He was moved to write his book after he went through the process and found it such a confusing process...Hope you are keeping good notes..maybe you will be the next best seller author in the industry.....

I heard a little more about the housing markets weakened state in your area...Higher rates are slowing real estate resales and prices are dropping in CA..Since folks buying homes to live in almost always are payment buyers higher rate (higher payments) almost always push prices lower...This is especially true of the resale market as opposed to the new construction business which is pushed more by the cost of building..Waiting for even higher rates will not save you any money...

[Mac]

I second Mr. Murray's take - falling prices would be for existing homes and / or new homes on land, offsetting the effect of higher interest rates. It's the land that's giving up price. As far as building, on its own, well, transportation costs have gone up with the price of oil (now you know where that tax cut went) - so building costs go up.

One tiny bright spot - I did notice that softwood prices here in Oregon were down a bit from last year. That may not be true in your market - the Sierra produce a fair amount of timber. And that price may not include transportation. I'm not a lumber broker so I'm just guessing.