Local new home competition is up 15 percent or more in eight of the largest markets in the country, with six in the western part of the country.
John Burns Real Estate Consulting notes that new home competition has surged in Denver, Las Vegas, Orange County, Calif., Salt Lake City, Sacramento, and the San Francisco Bay Area. It also rose in Austin, Texas, and Fort Lauderdale, Fla.
Competition dipped 10 percent or more in three major markets: Boston, Los Angeles, and Tacoma, Wash.
During a year of significant swings in the number of competitors, home builders have been reminded that sudden changes in new home competition, especially in the same submarket and price range, can substantially alter sales and profit margins.
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