WOW, I was really surprised yesterday to read in the Florida Realtors Early Bird News that another builder is considering filing for Chapter 11 bankruptcy. I attended a luncheon hosted by Engle Homes (New home bulder in Central Florida) at the end of last month to announce the launch of their new 2008 home designs and new communities. I have a growing concern that this will not be last builder to stun the industry.
I talk to a lot of sellers who want to sell their homes in communities were there are new homes being constructed and it is really difficult to compete with the builder's pricing and incentives. When Engle Homes informed us at their recent event that they are able to offer buyers a 4.99%, 30 year fixed mortgage, I sat there and thought to myself that every resale home in this neighborhood is in trouble. You can't compete with that. Well, maybe they can't compete with it either. Their net loss of 619.7 million proves it.
What will happen with Tousa Homes? We will have to wait and see.
Debbie Summers, REALTOR, e-PRO, ALHS of Cas & Debbie Summers, RE/MAX Central Realty, Lake Mary, Florida
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