After dropping land and land deals like a bad habit, builders are scrambling to rebuild their lot inventories. The AP reports that builders are venturing back into once distressed areas that now appear to be stabilizing, selecting ‘choice’ lots to restore the inventories they developed or sold off to investors.
DHW asks: Do you think rebuilding land inventory now is a wise move for builders?
The Commerce Department reported a decline in new home sales for September. This report represents contracts written, not transactions completed. The $8,000 Tax Credit expiration in November is believed to be the culprit. Despite the logistical constraints of building a new home within 3 months (a Lennar on-site agent I spoke with after this report was released quoted 97 days — barring any unforeseen delays), ‘economists’ at Thomas Reuters were still expecting an increase in new home sales for September.
If Senate Democrats get their way, the tax credit will be extended to March 31, 2010, with a $2,000 reduction in value for each of the subsequent quarters of the year. DesperateHouseWise.com thinks this type of extension will do little to help builders in 2010.
DHW asks: Are new homes sales strong or weak in your area?