Corelogic released new data Tuesday that shows Lubbock home prices increased by 5.3% since July 2015. More specifically, it reports a 1.5% increase from June of this year to July, and 0.4% increase from July to August.
A local home builders association said it has affected their business.
Creative Homes Build Consultant Flo Nimry said, “The new pricing because homes have gone up as much as they have, I can tell that it’s slowed down a lot. People are doing more pre-owned then they are new now and most of it is because of the land cost.”
Nimry said she’s worked in real estate for about 14 years. She added she’s seen Lubbock home prices steadily increase over the years, but spike over the past three years and that land costs has a lot to do with it.
“Before you even set a house on it now, your lot cost has gone up immensely.”
Nimry added because the city is growing, farmers are selling more of their land to developers to expand the Hub City. So before the ground even breaks, the costs have gone up.
“Well the farmers are more than making up for all of those lost years they didn’t have very good crops,” Nimry said.
The Corelogic report expects prices to continue to increase by 5.4% by July 2017.
“For anybody that wants to build, they probably better not wait another year. If they think it’s bad now and that’s what they’re projecting, I would think they better go ahead and move forward with it.” Nimry said.
