Thursday, August 13, 2009

Home Builder Numbers or More Smoke and Mirrors

Toll Brothers reported increased sales, and a lower number of cancellations. Wall Street then proceeded to wet its panties... Now why not do what Wall Street seems incapable of doing... look beyond those statements... I know of one builder with 13 new homes listed in the MLS... all 3,200 to 3,800 sq. ft. in size, 3 to 5 bedrooms... these are homes that would previous have been in the high "7's and "8's"... now being offer at $100-110 per foot!! Great the builder loses $250,000 per home... but not to worry, it makes it up in volume!!! Then we have the cancellation numbers... how many homes in contract were renegotiated in price to keep the sale together?? Could it be that Toll Brothers has a construction loan that required a payment??? Could it be that through tax breaks and accounting smoke and mirrors "we" are able to put a positive spin on things...Gotta be sure that the big boys of Wall Street can turn a fast buck... legalized gambling against a stacked deck...

1 comment:

  1. are so right with your Wall Street observation.
    Here in SoCal, Toll Brother's sold out the subdivision except a few models and the price $300+ per SgFt.
    Judit Schweller