Yesterday I received the 2nd Quarter 2008 lots sales figures and to my surprise there was a 46% increase. That is not saying much though since lot sales increased to a meager 69 for all of Snohomish County from 47 in the first quarter.

The price in which a lot sells for is the most important factor when forecasting what a new construction home will sell for on that lot. If a developer gets into a piece of dirt for X amount of dollars and forecasts a selling price of Y but the current market will only bear Z it leaves little to no margin for the developer as well as the future builders.

http://www.barnettassociates.net/snohomish-county-lot-sales-2nd-quarter-2008/