More Homebuilder Trends [Housing Tracker]

Seeking Alpha's Housing Tracker is a collection of housing-related excerpts from various sources, grouped by topic. Feel free to post any interesting links on the subject in the comments section below.

Rain Barrels Save Water, Not Much Money. “Throughout South Florida, rain-harvesting barrels are beginning to appear next to homes. The smallest rain barrels store about 25 gallons. The largest can hold up to 1,000. Most people use them for watering container gardens or flower beds, and the larger ones can provide enough water to wash a car… WCI Communities (WCI.PK), which recently filed for Chapter 11 bankruptcy protection, also included a rain barrel on its model home in the Evergrene subdivision in Palm Beach Gardens.” (Sun Sentinel, Oct. 3)

Developer Sells Land Dirt Cheap To Reap Tax Benefits.  “Homebuilder D.R. Horton Inc. (DHI) is unloading land across California at big discounts.Tom Reimers, EVP, O'Donnell/Atkins, a real-estate advisory firm: "There's going to be a rash of builders shedding assets. It's all tax-motivated." By dumping land, builders are chasing cash that allows them to keep current with lenders and pay overhead expenses… Analyst Ivy Zelman: Horton has $585 million in debt that needs to be paid off in 2009, $362M due in 2010 and $450M in 2011… Over the next few years, builders will likely build smaller developments closer to large metro areas, where house prices are expected to recover faster than in the far-flung regions.” (WSJ, Oct. 3)

Homebuilders Flooded with Inventory. Charleston, S.C.: “New home permits are down… More and more homes are remaining empty and homebuilders are holding on to more inventory than ever. “Its really hard right now, it’s probably the toughest time in the history of this industry,” said Frank Finlaw, Charleston Division President for Beazer Homes… But Phillip Ford, VP, Trident Homebuilders Association, says panic and rumors are making the situation worse: “I just refinanced my house, my in laws just bought a new house. There are mortgage options out there you just have to look for them. There are opportunities out there, it’s not dried up.” (WCIV, Oct. 2)

Dallas Homebuilder Launches New Company.“John Landon has been consistent in timing the housing market. He started his last company during the late 1980s Texas housing bust. And now Mr. Landon is launching a new homebuilding operation in the worst U.S. home market in generations. Mr. Landon left Meritage Homes (MTH) in 2006 during a restructuring of the Arizona-based builder. He had been with Meritage since merging his highly successful Plano-based Legacy Homes with the Scottsdale firm in 1997… Starts of new homes in Dallas-Fort Worth have fallen almost 50 percent during the last two years. And several homebuilding companies have filed bankruptcy or shut down.” (Dallas News, Oct. 1)                                                    

Get Seeking Alpha's housing market coverage by email -- it's free and takes only seconds to sign up.

Comments

[t-bird:]

I live in the Charleston area and the above blurb from one of the local news channels is true. P. Ford is trying his best to place a positive spin on the negative...Unfortunate... too little too late. Much more pain to come. Disclosure, I am a member of National Assoc. of Realtors, no debt, sitting on 90% cash, waiting patiently for opportunities...

2008 Oct 06 08:04 AM

[Builderman:]

It is no secret that builders are in trouble and the banks are making it worse, check out pathtodefault.com

2008 Oct 06 06:05 PM