I’m just going to go ahead and copy/paste this article, because it’s a good one. I find it very interesting that builders are buying up land now that it is cheaper. They are preparing for the upswing, just like I am by taking classes and learning all I can during this “slow” time. When the train starts rolling, I am ready!
Daily Real Estate News | July 11, 2008Builders Bank on Turnaround, Buy Up Land
Builders, including Lennar Corp, KB Home, Hovnanian Enterprises Inc, Meritage Homes Corp., are back buying and developing land again.
Lennar spent $162 million on new land in the second quarter and will spend at least $200 million more by the end of the fourth quarter, JP Morgan analyst Michael Rehaut wrote in a note to clients. KB expects to spend $300 million on land and $400 million on land development this year, Rehaut said.
Hovnanian is working on a land development joint venture, company spokesman Jeffrey O’Keefe says. And Meritage is “beginning to shift from defense to offense,” looking to buy land in the second half of the year, wrote Wachovia analyst Carl Reichardt after meeting with Meritage management.
In theory, buying land now is a smart move, said Todd Lowenstein of HighMark Value Momentum Fund, which owns 187,000 shares of Pulte Homes Inc.
“You have to be a predator in these down markets to position yourself for the upturn,” he said.
Source: Reuters News, Helen Chernikoff (07/10/08 )