|
|
|
| Home |
Call 800-421-3483 for more information
|
SLICING LOT SUPPLY: COULD THIS BE GOOD?
|
While Company Removed and Company Removed spike their lot count versus a year ago, Company Removed, Company Removed, Company Removed and Company Removed post slight declines in land holdings year-over-year. It’s not that the publics are not showing signs of confidence in their respective markets, they are merely treading carefully, proceeding with utmost caution when it comes to acquiring additional land and moving forward when it makes economic sense.
All indications show that the last few months haven’t evolved into the feeding frenzy for land that was predicted earlier in the year. Builders, across the board, had been expected to beef up lot supplies and capitalize on discount pricing, however, that has not been the case. Much like the rest of the commercial real estate industry, raw land and lot inventory deals are still not moving at a significant pace. There are a bevy of distressed funds out there that are targeting raw land and lots, but lack of financing and an unwillingness of the banks to part ways at the discounts many were expecting keep the deals at a trickle. Most of the big builders increased their inventories over the last year by buying from smaller builders and picking off lot inventory from other big builders looking to shave off inventory in a particular market.
That incestuous market seems to have slowed down as well and now many builders are looking to pare down their current inventory before spending anymore capital on raw land. If some of these funds can actually get some deals done in the next few months, they could be in a great position to start selling to the big builders next year.
Access to this newsletter is not available online and restricted to our subscribers.
acquire land, builders, commercial real estate, discount land pricing, distressed funds, land holdings, lot count, lot inventory deals, lot supplies |
|
|
 Call 1-800-421-3483 |
.png)
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.
|
|
|
|
| |
|
|
Printer-friendly format
|
|
