Good analysis over all

"They only dig dirt when they have a sales contract. If they don't have to build new houses, they can delay and avoid liabilities"

I don't agree you on that. If the market is slow, builders will reduce the price to build new houses. They had huge profit margins, and they will be willing to cut it down in order to make sales. Builders have daily expenses as well. It is not like if they don't build, they will not lose money.

A local builder I know pretty well has no inventory to liquidate, but he is willing to reduce prices to build.

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• Do you know why some builders may reduce price to build? -miat42- ♂ (985 bytes) () 11/14/2007 postreply 17:53:21