Thursday, May 18, 2006

D.R. Horton Flees North

D.R. Horton is looking for greener pastures up north in Redding, according to a company representative. From the Redding Record Searchlight:

"We are expanding into new markets -- Sparks, Nev., and Stockton recently -- and are attempting to test Redding as well," D.R. Horton Marketing Director Fay So said from her office in Sacramento. "We have pretty much saturated the south, so our only choice is to move farther up north..."

"We are on a very aggressive construction schedule," So said. "Obviously, sales are not as strong as they used to be, and models really drive sales. We want to get the models up so the public won't have to guess what they look like..."

D.R. Horton is the first large-scale national home builder to come to Redding since Kaufman and Broad built entry-level homes in the early 1990s. Kaufman and Broad's initial success ultimately proved a detriment as the builder saturated the low-end market and was left with unsold inventory. The company left Redding in the mid-1990s as the real estate market nose-dived.
Will history repeat itself?

12 comments:

Lander said...

Does anyone have a paper copy of today's Sacramento Bee? I was wondering if they had a chart with SFH sales by county. I didn't see it online. The Sacramento Bee has published these numbers (as well YOY sales & price figures) every month for over two years.

Anyone?

I use the data for the sales graphs on this site.

Happy Renter said...

I can't believe people are still buying homes, how dense do you have to be.

Rob Dawg said...

I can't believe people are still buying homes, how dense do you have to be.

People still die and retire and form families. The question is why anyone still has any expectation that houses are anything except places to live.

tom stone said...

lander,i think i saw it in yesterday's bee...i glanced through it in petaluma yesterday after channeling SMEGMA. i will check the higher sedimentary layers in my car and get back to you.if you wish to channel SMEGMA yourself,you can find instructions for invoking this being in a recent post at the sonoma housing bubble

Happy Renter said...

29% of of those that took out loans in 2005 are underwater.

http://www.finfacts.com/irelandbusinessnews/publish/article_10005893.shtml

Happy Renter said...

People still die and retire and form families. The question is why anyone still has any expectation that houses are anything except places to live.

I realize there is various pressure to buy but the market is clearly headed south. It seams odd that someone would perchase at this point knowing the likely hood of of the house losing value.

A house is just a place to live but buying a house is now twice as expensive as renting the same house.

Happy Renter said...

You can't avoid the bubble popping news at this point. Sales should dry up quickly.

1000's of people in the area have had their houses on the market for months.

I thought it would take years for this to unravle, but their is more and more likelyhood of panicked selling.

Happy Renter said...

We broke 14,000!

http://bubbletracking.blogspot.com/2006/05/tracking-sacramento-metro.html

Happy Renter said...

At the current sustained pace we will break the record inventory in less than 2 months.

Population adjusted record high inventory: 17,913.

If you haven't read it yet Robert Shillers book "Irrational Exuberance" illustrates this exact scenario where sellers rush in at the peak not realizing its to late.

Happy Renter said...

Where's Jimmy Castro and John Lockwood to tell us how great the market is doing. Jimmy's been reposting his stupid the market is still active post. Lockwwod isn't posting anything. Though on one of his most recent post he said the phone was ringing off the hook and he was just to busy.My guess is most of his time is spent with sellers.:)

tom stone said...

at least you have the bee,i have to live with the press democrat,their real estate report is written by coldwell banker no less and presented as news!there were a few discrepancies again this week...understating inventory and month's supply by more than 50%...not mentiong that 30% of homes have reduced prices...of course they might have inadvertently used last months inventory figure,it has doubled to an 8 month plus supply...it's a balanced market they say,time to buy.

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