We currently own 4 buildable lots in the Memorial area which vary from 7,000 to 50,000 sq ft. in size We have 3 custom homes under contract that we are building, ranging from 5,500 sq ft to 10,500 sq ft. In addition to our existing contracts and lot inventory, we are also bidding 2 custom homes for architects and potential clients. We are receiving approximately 4-5 new leads per month from clients interested in building or buying new homes.
Some of our clients are getting traditional home mortgages. It appears that the required lender documentation is very strict and appraisals are often an issue because of the recent downturn as well as new federal guidelines. We have lenders who have recently loosened their requirements and are becoming more aggressive in making loans. Mortgage loan rates are at an all time low.
Material prices are stable, and many items have dropped in price considerably from 2008. Lumber recently spiked up in price but has since dropped. Labor prices are down 5-7%. Existing new homes for sale over $2,000,000 (specs) are slowly being absorbed in the market, several have sold or are sale pending this year. Some builders who are holding inventory are aggressively dropping prices, with much of the remaining stock of new homes having been picked over.