Friday, October 9, 2015

Blu Homes Raises Home Prices to an Average of $760,000

Blu Homes, located in California, has made two major announcements recently. First, they are pulling back from being a nationwide housing manufacturer and will concentrate on northern CA for the next few years and secondly, they are raising the average price of of their homes.


It sounds like the owners and management have begun moving from being a marketing company that just happens to build modular (folding) homes to a manufacturing company that is taking a hard look at its marketing plan.

That is great news.

Here is the article straight from the Blu Home Blog:

October 5, 2015
2015 PRICE INCREASE
By Dan Goodin - Vice President of Sales

In August, Blu increased our prices to an average $760,000 all-in base price, or approximately $360 per square foot without land.  It was a move made after careful consideration, so we wanted to provide some insight and background into our pricing evolution.

In September of last year we unveiled the 2015 Product Line with lower prices and more spaciousness than our 2013 products.  Over the last 24 months we have been able to hold our prices flat-to-down, with the award-winning Breezehouse decreasing 21% from 2013 to 2015 while the costs of home building in California increased 15-25% [1].  During this same time prices in higher cost areas like Silicon Valley increased by as much as 100%, in many areas reaching more than $1,200 per square foot [2].  In the core areas where Blu customers are building, labor and materials costs continue to escalate. 

Reacting to those realities, we announced a price increase for new orders starting August 1st, 2015. These orders will begin deliveries nine to twelve months later (upon completion of permitting activities), which means the new prices will actually go into effect over three years since our last price increase, in 2013.  We believe it is a positive reflection on our design process and disciplined, long-term planning that enables us to increase prices for the first time in three years at a fraction of the rate of increase in our core regions.

NEW PRICES AND ADDITIONS




With the new pricing you get more for your money. The base price of a Blu home now includes even more of the site work and soft costs of the home. These include base costs for the crane for the site, site supervision, and basic architecture and engineering services, including but not limited to the design of the basic foundation. We have focused on including these necessary homebuilding costs with the base price to provide a better expectation of total home cost and ultimately a better customer experience.

CLICK HERE to read the entire article.

No comments: