With homes prices up 9.4% on average from last year, MarketWatch staffer Thomas Randall takes a look at what's driving up these prices, and how much investors and sellers are making in the market. Randall notes that builders are buying lots for X, builidng for X, and selling for 3X which gives them a great return on investment.
It also helps that homes are not sitting long with many buyers fearing that prices will keep rising. One particular home in the Dallas-area exemplifies the climate of the Dallas market:
It is a 3-bedroom, 1-bathroom home with just over 1,000 square feet. The home sold for right around half a million dollars. It then sold again five months later for $100,000 more. Now it is leveled and the lot is cleared for new construction.