RECENT ARTICLES-NEW CONSTRUCTION MATERIAL INCREASES

                                 LUXOR'S THOUGHTS
It is obvious that we are in challenging economic times in terms of rising gas and housing costs. However, this situation also creates opportunities. Key thoughts:
1.   Recently, the Federal Reserve has stated its plans to continue to raise interest rates. Financial markets are very likely to similarly continue to raise mortgage rates. Common expectations are for mortgage rates to increase between 1% and 2% over the next year. Current rates are around 5.8%.
2.  Since the Hurricanes, vendors have to date already sent Luxor price increases averaging  $3,000.00+ per house.  It is difficult to estimate how much material costs will further increase in the near term but one thing is for sure, material costs will not be going down in the near future. Given the current strong demand for housing in the U.S. and additional demand being created to rebuild Hurricane-disaster areas, I believe costs will continue to increase at a minimum of $6-10,000 per house annually.  

                                                                       HOUSING AND INVESTMENT OPPORTUNITIES:
1. By buying a recently completed New Model, you can totally avoid paying for these new costs. At the same time, the house you just bought will cost the next person, day one, atleast $5,000 to build.  All things considered, you just made $5,000 in real value.
2.  As mentioned above, many builders are inserting "escalation clauses" in their contracts. This means they are not locking-in your new house cost but instead, your final cost may likely increase during construction!   Luxor's Pricing Policy:  As we are unable to keep our marketing flyers and web page current to track these changes, all house prices will be quoted with a "material cost premium" added to advertised rates reflecting actual cost increases received from vendors to that date. However, we don't think your family should have to plan for unknown cost increases after you have found your dream house and set your budget. Therefore, the date Luxor takes a deposit and executes an Agreement to start a house for your family, Luxor will guarantee its final cost for the house to you. Of course, the house must be started as soon as possible since Luxor will be taking all the risk on continued material increases until the house is completed.
3.  Interest Rates... rates speak for themselves.  The sooner you can get your house started, the lower the interest rate will be at closing.  To assist you, we have some banks that will lock-in an interest rate for up to 180 days for you! (Construction time typically is 180 days from ground breaking date to move in)

In short, waiting to start or buy your New Home during these economic times will almost certainly cost your family more money.  If you are ready, buying now on the other hand, should give your family an immediate return on your investment as your New Home will likely be worth significantly more than you paid for it by the time it is completed. At Luxor Homes, we will do everything in our power, including pre-purchasing and stocking large quantities of materials through our vendors, to save you money.
Randolph A Hall, President & Owner