Augustus

Housing Bulls' Indiscriminant Appetite May Cause Heartburn

One of the more difficult problems with the builders is trying to figure out how much call back work they have to cover. All of that expense gets buried in the financials - not particularly hidden, just melded in with other costs of operations. So, now that sales volumes are declining, everyone they sold to over the last couple of years is underwater on the sales price and has no love for the builder anyway, I expect that these expenses will really escalate and drive expenses higher. An unhappy customer with a $500,000 item can find a lot of things to nit pick over if they want to try to punish the builder.