Some home builders are reporting a second quarter surge in income, but business has slowed since buyers rushed to meet the April 30 tax credit deadline.
With unemployment high and foreclosures flooding the market, Ken Campbell, CEO of Standard Pacific Corp., said during an earnings call last week. "I think it will recover, but it sure as heck is not clear when it's going to recover at this point."
Reaching a point where the industry can make a profit selling a predictable number of homes is the goal for some builders.
DR Horton CEO Donald Tomnitz said no more tax credits, please. "We want to get back to a normalized market. It is a lot easier to run a business based upon designing your business with the current demand as opposed to having any kind of stimulus or incentives to create abnormal demand."
Source: The Wall Street Journal, Dawn Wotapka (08/04/2010)
Chain Real Estate Investments & Mortgage, Steve & Joel Chain - Cottonwood, CA
Guy,
The construction side of our company is quite strong. It's not on auto-pilot that's for sure. The markets aren't static and being flexible is a good business quality right now. Although it's not an easy one for large builders to come by.
Steve
Aug 05, 2010 03:28 AM
Hang Me Up Photos - Jamestown, NC
Greensboro Area Real Estate Photography
New construction is far from normal in our aarea. I suspect more local builders will go under this year.
Aug 05, 2010 03:33 AM
Rainer
48,450
48,450
Guy Adams
I'm Your Guy!
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