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THINGS LOOK UP WITH IMPAIRMENTS DOWN
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Homebuilder , Homebuilder, Homebuilder, Homebuilder and Homebuilder breathe sighs of relief as impairment charges continue heading south — no easy feat as home pricing tumbles and land values keep diminishing. Homebuilders seem to be finally winning the melee over land-related write-downs as markets find some stability in most areas. Standard Pacific must be pleased with themselves as its impairments drop to zero dollars this quarter after topping out at almost $444M two years ago.
Is the pain finally over? With fewer write-downs, homebuilders seem to be in a lot better shape these days compared to how they were doing during the woes of the past three years. Having dabbled in land speculation and lost, builders are now sure to take their time and weigh all options before embarking on a land purchase. Although land is discounted up to 70% in some parts of the country — like Florida and California — coupled with a lack of new product, now could be the time to buy. On the flipside, inventory levels reached 9.2 months in February, its highest since May 2009 (the good news: it’s since rebounded to 6.7 months in March), however, we all know the unpredictability of current market conditions. Homebuilders find themselves in a Catch 22 situation. Don’t be surprised to see a few companies approach land buying cautiously and curb the risk of huge land holdings while others make the most of current marked down pricing. It’s a case of rolling the dice.
Access to this newsletter is not available online and restricted to our subscribers.
current market conditions, home pricing, homebuilders, impairment charges, impairments, land buying, land holdings, land purchase, land speculation, land values, land-related write-downs, write-downs |
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 Call 1-800-421-3483 |
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Crittenden BuildersReport
delivers the latest news and analysis in homebuilding, covering a range of topics from home sales and design to financing and distressed deals. The report provides the strategies and goals of public and private builders, as well as land merchants and master plan developers. Receive advanced information on what projects will work in the upcoming year and who will buy them.
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