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WASHINGTON (MarketWatch) — Families buying new homes can expect prices to continue to rise, as builders say there’s a low supply of developed lots and that properties suitable for new housing have become more expensive.
Builders will pass along 100% of increased lot costs to homebuyers, said David Crowe, chief economist at the National Association of Home Builders.
“Builders price homes based on what they are going to have to pay for all the ingredients. If they are starting to pay more for lots, they are going to have to pass that on right away,” he said.
