Why is it that with plenty of LEGITIMATE yet creative ideas to move property WHILE HELPING BUYERS, some builders are sitting by watching millions of dollars in losses swirl down the drain? Business Week reported (as did many other news outlets) that sales of new homes fell 6.6% in June, a drop of more than 3x what was expected and the biggest decrease sine January. With a supply of 7.8 months and a falling median price point, builders (like DR Horton) are taking a bath (I'd call an $835M loss for DR Horton a blood bath). See http://www.businessweek.com/investor/content/jul2007/pi20070726_112318.htm?chan=top+news_top+news+index_investing
Why is this industry so frightened of outside the box thinking? Is it that fraud has become more prevalent, so even legitimate ideas (albeit nontraditional) are not given due consideration? is it that the pendulum has swung from the once embraced "liar loans" (SISA) to hypersensitive over-analysis of perceived credit risk? Is it that the overall economy is in turmoil and buyers are even more cautious, even at a time when buying seems like the smartest move?
Experts with answers, move to the front of the line. ;-)
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