DAILY REAL ESTATE NEWS: Home Builders Are Rebuilding
May 23, 2016 08:25 AM
DAILY REAL ESTATE NEWS 02/10/10: Business is improving for many home builders.
Everything from tax credits to longer tax-loss carry-backs to the ability to take big write-downs for the declining values of land and inventory has created a foundation that has allowed builders to rebuild themselves.
Beazer Homes USA Inc. announced last week that first-quarter new-home orders rose 37 percent, and its cancellation rate fell to 27 percent from 46 percent the previous year.
D.R. Horton also announced last week that it had posted a $192 million profit in the first quarter after losing $62.2 million in the same quarter last year.
Executives for both the companies are pleased with this quarter’s results, but both express concern that the overall economy isn’t picking up much speed.
“You have to have job growth in the economy, and there is obviously no job growth to speak of today,” D.R. Horton CEO Donald Tomnitz says.
Source: The Wall Street Journal, Paul Vignz and John Shipman (02/05/2010)
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