fka ftc said:

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TxAG#2011 said:

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So the builders entered into these contracts without knowing the prices could increase? My sympathy meter is low.

These terminations have much less to do with construction costs and everything to do with a red hot real estate market. They're backing out to list on the open market. Pretty easy to see what's happening here.

And please leave that communist crap over on the politics board.

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You are simply misinformed or just projecting your cynicism despite the facts.

I described capitalism. You described communism. But this is economics not politics.

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Literally nothing to back up what you are saying but to accuse people of being communist lolol. As I said, take your nonsense to the politics board.

What backup are you looking for? A CNN poll? Some people actually have direct knowledge of things that are not published on the internet or in polls, msm, etc.

My statement on how the builders approached the lumber increases is based on direct knowledge. But you be you, and I will be me. And you won't tell me where to post.

Just an example of the customers getting over on the corporation.

Quote:

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04/22/21
ARLINGTON, Texas--(BUSINESS WIRE)-- D.R. Horton, Inc. (NYSEHI):
Fiscal 2021 Second Quarter Highlights - comparisons to the prior year quarter

• Net income per diluted share increased 95% to $2.53
• Net income attributable to D.R. Horton increased 93% to $929.5 million
• Consolidated revenues increased 43% to $6.4 billion
• Consolidated pre-tax income increased 90% to $1.2 billion
• Consolidated pre-tax profit margin improved 450 basis points to 18.3%
• Homes closed increased 36% to 19,701 homes and 41% in value to $6.2 billion
• Net sales orders increased 35% to 27,059 homes and 47% in value to $8.8 billion
• Repurchased 4.5 million shares of common stock for $350.4 million

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ChoppinDs40 said:

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agcrock2005 said:

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double aught said:

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It was just on in the background so I may be wrong on the details, but there was a story on the local news yesterday about a builder breaking their contract with a couple and asking for 90k more before starting the house.

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A lot of builders have that allowed in their contracts, and several have been exercising their rights for the last few months. I believe it's called a Force Majeure clause but someone correct me if I'm wrong please.

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force majeure because of commodity price increases is bogus. That is not an "act of god".

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Force majeure is real, but I don't know how it impacts builder contracts. There has been a pvc pipe and fitting increase every month since January. I've been in the supply business for 19 years and never seen anything like this.

At first the issue was the hurricanes that decimated the gulf coast, then the winter storm. 90% of the resin that is used to make plastics come from the gulf coast. Now, the threat of possibly the worst hurricane season has been predicted already. People are freaking out.

I've seen a subdivision near me that had a sign from the 600's. A month later it said from the 900's. Now it says from the 700's. I wouldn't pay more than 400 for a house on a zero lot line.

It's a weird time. People are coming here in droves because they think our property taxes are cheap. Hahaha. I can't wait to tell you how much my taxes are on the house we just bought in Michigan compared to here. Texas is the new California, without the ocean on most of it.

Long story short, I'd be taking bids too. Also, now is a really bad time to build a house.