Nah, real estate prices never fall.
Nah, there was no real estate bubble.
Meanwhile, the lesson for everyone from today's Lennar firesale should be:
GET OUT! GET OUT NOW! GET OUT AT ANY PRICE!
And for anyone interested in catching a falling knife (I know, it's just soooo tempting to buy things during 60% off sales), just remember, there's no rule that says it can't fall more. Look to the fundamentals. Look to the historic ratios. We're regressing to the mean. And the mean is still a long, long way down.
And just think, that's a 60% fall in a matter of months. Can you say panic?
Lennar sells homesites valued at US$1.3B for $525M as it becomes "near assetless"
MIAMI - Home builder Lennar Corp. formed a land investment venture with Morgan Stanley Real Estate to acquire, develop, manage and sell residential real estate, with Lennar selling properties valued at US$1.3 billion to the venture for $525 million.
The acquired properties include about 11,000 homesites in 32 communities throughout the United States, consisting of raw land as well as partially and fully developed homesites in California, Colorado, Florida, Illinois, Maryland, Massachusetts, Nevada and New Jersey.
As of Sept. 30, the acquired properties had a book value of about $1.3 billion for one of the country's largest home builders.