New home builders ain’t seen nothing yet. If you’re in the market for new home construction you may want to wait a bit. If you’re a seller with a lot of new home construction inventory around you – you already know you’re in trouble.

New home builders and developers are going to suffer greater losses and pressures later this year due to increased fuel prices. The price of fuel affects everything in commerce. Lumber and cement don’t arrive by magic. How many construction people do you know that drive those gas-guzzling heavy duty pickup trucks? (And while I’m on the subject – aren’t they some of the most aggressive drivers on the freeways?)

Home sellers in neighborhoods where prices on new homes are being slashed need to let go of the hope that things are going to improve this year as new home builders deal with more economic challenges.

New home construction prices are most likely going to see a whole new round of price discounts, free upgrades and lending assitance coming from new home builders and developers. For buyers this will result in a nice Christmas. Sellers in these neighborhoods need to brace for the impact.