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Designs, sells and builds single family homes in various locations within the United States. Designs homes at various price points to appeal to homebuyers across various demographic segments.
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mrolfers (66.59) Submitted: 4/02/08 5:42 PM : Start Price: $9.49 BZH Score: 23.69
I work for a private home builder in Houston, TX and have kept in touch with friends in the industry around the state. I have not sold a new home since the first of the year, and have inventory homes sitting for the first time in five years of spec building. Industry friends in from San Antonio and Dallas have reported continued deceleration in sales and massive price slashing on inventory by public builders. One example was $100k discount on an original listing price of $350k. First quarter earnings reports are going to look sickening for every home builder out there. While foot traffic is there, buyers can't sell their old homes to move up into new homes. I'm not as affected in the $750-$1 million price point, but am definitely feeling pressure to discount almost every sale. It's not getting better yet.
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TDRH (99.98) Submitted: 4/17/08 1:27 PM
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I would have thought that the hot Houston economy would have not have been affected. Housing is relatively low vs median income there. You should see what houses sell for in Saint Louis. Sorry to hear you are struggling, hope it turns around for you.
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podrag (< 20) Submitted: 5/20/08 5:33 AM
Thanks for the report from the trenches... Much better to hear from someone like you than those talking heads on Bloomberg and CNBC. I would have thought that Houston would be able to weather the storm with all the oil industry jobs there... Blood must be running in the streets everywhere else.
rhino888 (77.96) Submitted: 5/30/08 2:39 PM
I have stopped building spec homes in Bend, Oregon and have turned my last few on the market into rentals. The whole market imploded as it was fueled by speculators and Californians moving north. Now that the Calif. folks can't sell their homes the demand has dried up. The public builders are sitting on a bunch of inventory and lots.
rhino888 (77.96) Submitted: 5/30/08 2:36 PM
slyguysinc (80.84) Submitted: 6/07/08 12:14 PM
I know where your coming from! I'm a developer in MN and have had to rent my spec homes to cover interest payments to the banks. I have switched to multi family housing units to accommodate our rental shortage and to accommodate the new rental crowds who've lost their homes to forecloser. I'm semi bullish on BZH and play the pull backs and have done very well playing the 1/2 point swings. It is a players market right now and I wish you luck in regards to investing and the home building market.
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