[Greenbuilding] Cost of Building-General

[Lance Collins]

>
>On Mon, 18 Dec 2006 18:08:43 -0500,
>SANCO Business Group, LLC <chansey at earthlink.net> wrote:
>
> > Buildings costs a have literally gone sky high.
>
>and Jason Holstine <jasonh at amicusdb.com> wrote:
>
> > Biggest culprit has been supply and demand in China and to a lesser
> > extent in the US.
>
>Jeannie <jeannie at babb.com> wrote:
> > You don't think the rising interest rate is the culprit?
>====================

Until recently the sale price of a house has consistently been higher 
each year than the year before.  If you expect that to continue then 
it doesn't matter what you pay for a house today as will be worth 
more tomorrow.   Thus there has been insufficient buyer resistance to 
rising costs to restrain the building costs.

When will this bubble burst?  No-one knows but history says every 
previous bubble has burst.

In Australia house prices in real terms are more than double the long 
term average.  Even with rising interest rates the demand for housing 
at increasing prices is still there.

Lance
(in Aus)





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