Saturday, May 13, 2006

Cancellation Virus Spreads to the San Joaquin Valley

More news about new home cancellations, this time from the San Joaquin Valley:

The percentage of buyers backing out of new home purchases is significantly higher in some parts of the Northern San Joaquin Valley than elsewhere in the nation, according to Steve Smiley, another Hanley Wood executive.

"We're seeing cancellation rates as high as 30 percent in some projects," Smiley told builders gathered at a Modesto conference Thursday morning. His talk focused on new home sales in Stanislaus, San Joaquin and Merced counties, which have slowed dramatically since last year...


tom stone said...

big builders seem to be cancelling projects throughout california where they can.although i expect many already started will be completed due to the large capital expenditures already made...completing and breaking even..or incurring a moderate loss might make more sense than walking away in some cases..half a dozen projects were cancelled in the bay area last week.

Happy Renter said...

They'll finish their projects. They can cut their prices in half and still make a profit. They'll build simple cheap homes and crash the market with them.