Manufactured Home Prices Just got CUT AGAIN

Manufactured home prices have gone up a lot over the last two years but buyers might be happy to learn that they are on the way back down. Starting earlier this summer manufactured home prices have started to decrease which might be people who have been waiting on the side lines the buying opportunity they have been waiting for. In this video I talk about how much manufactured home prices have come down, the reasons given and where I think prices will go from here. Watch and learn about whats happening behind the scenes in the manufactured home industry.

Welcome back my name is carrie and today i’ve got an update on manufactured home pricing if you would have told me a year no even six months ago that i would be making this video right now about the price of a new manufactured home i would have said no chance i was so confident in fact that i ordered a new home at the start of this year and now well let’s just say

I could get the exact same home for a lot less i think the saying goes what goes up must come down and that’s exactly what i’m seeing right now but what’s yet to be determined is how far prices will drop 2020 to 2021 the price of new manufactured homes shot up as every possible thing seemed to be hitting the fan at the same time and a lot of people who were in the

Market to buy weren’t overly pleased to see me sit here week after week to let them know about yet another price increase and rightfully so it was a tough time for buyers now prices are going the other direction for a bunch of different reasons and people in the comments are still mad listen there will be people who bought at the top of the market like i did but

That doesn’t change the information so the show must go on what i’m going to do is tell you the very latest in manufactured home pricing tell you a couple reasons i think it might be happening and let you know where we go from here if you’ve been following the channel you know that after almost two years of relentless increases the price of a manufactured home

Peaked for me on march 15th that’s the day the last price increase was given from the factory that i deal with the first sign that things might be softening came on june 20th when it was announced the steel surcharge would be reduced by ten dollars per foot on single section homes and twenty dollars per foot on double section homes at that time i thought it was

A bit suspicious that the prices would effectively be lower because my thought was the factory wouldn’t be lowering prices unless they needed to drum up some business here’s the thing price increases are not a fun event for anyone in the new construction process the building material suppliers increase prices to the factory the factory increases to the dealer and

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Finally the dealer increases to the customer and at each step of the way people are mad because now they have to eat some or even all of the cost on existing sales and raise prices for new buyers the one it affects the most is always the end user the customer which is why i took so much heat in the series of price increase videos i get it my point is the factory

Likely didn’t want to decrease prices until they were sure it was absolutely necessary because a decrease followed by another increase would not go over well no take backs the first official decrease came on july 8th prices were dropped across all product lines as a result of downward pressure in some commodities resulting in lowering some factory input costs again

This decrease surprised me because i’m just not used to seeing them it doesn’t happen i got in the manufacturing home industry in 2009 right after the last big housing market correction so i’ve only ever seen price increases i was blown away when it came in my job out hit the floor i made several phone calls i even wrote about it in my diary i’ve seen factories

Run specials i’ve seen sales but not once have i seen an official price decrease until july 8th this isn’t like buying a t-shirt that doesn’t fit a five percent decrease on something as much as a home is a big chunk of change and that was before the second decrease think about it for easy math if i’m paying a hundred thousand dollars for a new home a five percent

Decrease is a five thousand dollar savings but wait there’s more on july 29th the second decrease in a single month was announced at 6.25 percent along with a note that said we have been observing fluctuations on raw material pricing and we are continuing to see softening in the market we are pleased to announce that we will be implementing an approximate base price

Decrease of 6.25 on all invoices effective immediately carry the one that’s an 11.25 percent decrease in a single month whoa one thing i wasn’t clear on was some of the wording on the bulletin was the softening in the market referring to the overall real estate market or the softening of the raw materials to me it seems to apply to both even though the timing on

My purchase was just a bit off it is more enjoyable passing along this info than it was the price increases this is what a lot of people have been waiting for and they might finally be able to buy the home that they’ve had their eye on it should be noted that even though prices increased at around the same rate industry-wide it doesn’t mean they’ll decrease the

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Same way this is the information i’m getting in my market but factories are regional so i can’t confirm that every factor in north america is reacting the same way to current market conditions here’s what’s going on as always we need to verify that what’s being said in the bulletin is what’s actually happening then and only then will i speculate on what i think

Is going on i get the update bulletins directly from the factory but unfortunately i don’t have access to all the information needed to fully understand their reasoning for decreasing prices the factory doesn’t tell me how many sales they’ve made in a given month their net profit per home at any given time or how much their actual cost to build have gone up or

Down and even though it’d be nice to have that info it’s really none of my business i get the bulletin that gives me a few details then it’s up to me to try and figure out the rest the material used most as a reason to increase prices in these bulletins was lumber as you can see between april 2020 and march 2022 prices were significantly higher than any other

Normal year dating all the way back to 2012. even though prices started going up in april 2020 i didn’t receive my first increase bulletin until july so there does seem to be a bit of a delay between lumber prices and increase the last price increase on march 15th was shortly after another spike in the cost of lumber but they’ve been trending down since ice a friend

Who builds on site if he’d noticed these savings on the cost of building materials on a duplexes company is currently working on and he estimated the cost had come down 15 to 20 percent so it does all seem to check out but i do have a few theories i recently dropped the price on a homer trying to sell because at the original price set we just weren’t getting much

Interest would have dropped the price if we had a bunch of showing requests or offers coming in on the home no absolutely not i would have sold it at the price that was set i feel like the same logic applies to what we’re seeing at the factory even though the cost to build a new manufactured home are coming back down i think the demand is as well my guess is there

Are build spots that have yet to be filled or the backlog is shorter than they like it to be because i don’t think they’d be lowering prices if they have enough orders coming in to fill those spots why would they it wouldn’t make any sense we can’t forget that they are a business they’re there to make money so if they had enough people lined up to pay the prices

That they’d set no need to decrease it seems as though a lot of the buyers have dried up which means prices must come down which is great news for those who want to buy if you’re one of the people who has been patiently waiting for a pullback my first piece of advice would be don’t listen to someone who bought at the top of the market just kidding kind of but

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Seriously i do have access to more information than most so as long as i’m sitting here sharing it in somewhat real time you’ll probably have a better base to make your own buying decision buyers are in a weird spot right now where yes prices have come down but they’re still significantly higher than they were two years ago obviously i don’t know what’s going

To happen with manufactured home prices with 100 certainty it could go either way however if i had to guess based on the bulletins i’m getting from the factory i would say there are more decreases coming so get ready to make your deal if you’re buying now you should already be saving but to be sure here’s what you can do when prices were increasing i suggested

To people that they might want to consider trying to find an old lot model to buy because they would have been purchased before the increases started but now the exact opposite applies on the last price decrease video i posted there were a lot of comments from people saying that prices weren’t going down in their area and that’s completely possible i can only

Speak to what’s going on here with that being said if a factory has decreased prices to the dealer in your area the law models are now likely the more expensive option because as i mentioned earlier i can buy the same home that i ordered at the start of the year for a lot less than i actually paid 11.25 percent less to be exact if you’re ready to buy now ordering

Something to be built is probably a better option than taking something off the lot to get the best price manufactured home prices have gone down again it might take a while for the decreases to filter down to the end user but everyone who’s been waiting patiently might finally get a look at their buying opportunity based on the recent decreases bulletins and some

Of the other things happening in the market i don’t think we’ve seen the last manufactured home price decrease yet but only time will tell as soon as i hear anything about prices going either direction you better believe i’ll make an update right here on my youtube channel that’s all i’ve got for today if you like manufactured home videos make sure to subscribe to

My channel because i’ve got new ones coming out every single week thanks for watching see in the next one you

Transcribed from video
Manufactured Home Prices Just got CUT AGAIN By Kerry Tarnow