February 23, 2006

Here come the firesales. And you know who gets burned.

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.


xSparta said...

Lakewood Ranch has been overpriced for a few years. Bout time they come down to reality. They need to come down another 30% or more before homes might be fairly priced!

brokersleaveyoubroke said...

I just read a similar story about Orlando. There were 6,000 homes for sale in December. There are 12,000 for sale in january. Prices are stable for now because nobody wants to lower their price. Next month should be interesting.

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