You know, the builders will be OK - worst case instead of 40% profit margins they'll cut it down to 0%.
It's the little guy (the guys Bob Toll was selling houses to) that'll take it in the shorts as his house is instantly devalued - and significantly devalued. Meanwhile he's extracted the "equity" to buy a new Hummer H2.
Home builder reducing prices by $60,000
First it was Centex. Then it was Lennar/US Homes. Now it's Kimball Hill Homes that's offering massive savings on new homes at Lakewood Ranch.
Jonnie Dwyer, a Kimball Hill agent, sent the following e-mail message to Realtors on Jan. 25.
"I had to share with you what's going on and I can hardly believe it myself ... All homes in Greenbrook Banks have been REDUCED! The current sales prices are as follows: Lancaster II -- $364,990, Seaside -- $369,990, Amelia -- $399,990, Hartford II -- $434,990.
That's $60,000 -- yes, SIXTY THOUSAND DOLLARS! Save an additional $25,000 toward options and $10,000 toward closing costs if you use KH Financial for your loan and Enterprise Title Co. for your closing.
February 23, 2006
Posted by blogger at 2/23/2006