With financing hitting one of it's hardest times smaller builders have found themselves over leveraged and holding too many properties. Some have turned these into rental properties, some have given up and are losing the half completed homes to the bank and yet others are buying all the homes they can.
Where did the big guys go? Half completed developments surround us, final plat approvals suddenly are taking longer than expected. Those on short plat schedules are dragging their feet so they aren't forced to close. So what's the story.
The real story is this.......timing. Why would you close now or in the near future when financing is tougher than usual? Why would you close now just to flood the market with more lots?
Most developers are holding tight so that they can get the original owners to carry the cost of holding the property through the hard times. Can you blame them? The overwhelming inventory is slowly going to be taken and they will be seeing better times......or so they believe.
What do you think?
On to the other item I mentioned - the developers who are buying. They are seeing incredible deals on short sales as banks are unwilling to take over half completed projects and know they can't sell these to consumers due to financing issues. Developers are buying at 50% - 60% of value, finishing the product and relaying some of the savings on to home owners.
Crazy market, great times and the time to make a deal.....oh and if you know of someone that fits these scenarios let me know, I may have a solution for you!!!