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Price Increases

Definition of term

Home price increases refer to the rise in the price of a house or other property. An increase in demand for the property can cause price increases, leading to bidding wars between potential buyers. Price increases can also be due to a rise in building materials, land costs, or labor. In some cases, price increases are simply due to market speculation, with buyers betting that the price will continue to rise so they can sell the property at a profit. Some builders may choose to raise prices for each home sold in a community.

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