Joe,
There was an article in today's paper about this subject:
"Most everything was in boxes as Dottie and Gary Sahadeo prepared to move out of their Coconut Creek home to a more spacious, custom-built house west of Boynton Beach.
But with construction almost complete, the Sahadeos received an unwelcome call: Their developer was canceling their contract, requesting $150,000 more to finish the work.
"We bought stuff for it. It's depressing," said Dottie Sahadeo, who expected to move a year ago.
Instead, the Sahadeos are locked in a legal battle to force completion of the five-bedroom house, which was under contract for $590,000 in 2003 but could sell for around $1 million today. Their case illustrates an emerging problem between developers and homebuyers now landing in court to settle contract disputes.
From the home buyers' viewpoint, developers have been breaking contracts to sell the home at a higher market value. Some developers, though, cite the rising cost of building materials as having forced them to back out....
AND ENDED:
In the next couple of years, McCabe, the real estate analyst, anticipates a "tremendous amount of litigation" -- speculators suing brokers and lenders, developers suing speculators to get them to close and homebuyers suing developers. "It's been a rose garden the last four to five years," he said. "Everyone's been happy because everyone's making money."
sounds familiar. Even if the demand of supplies from rebuilding the Gulf coast homes, destroyed by Katrina, doesn't kick in, these people hording the market of supplies will surely send prices higher. Just get ready to spend more if you are buying or building a home.
