This is a good thing, and the first step toward clearing out some of the [omgwtfbbq huge crapload of] already constructed homes that need to be sold.

Yet there are 3 new neighborhoods popping up around my neighborhood. So I have to believe its still profitable.

I'm no anti-urban-sprawl person, but could this basically mean that we have enough houses out there to meet demand?

I really have to wonder why there are so many houses being built when the market cannot currently support the "used" houses that are for sale. We moved to Texas last year and bought a house, the "slightly used" model works just fine for us. I couldn't see spending more money on a brand new house that hasn't had all the new-house kinks worked out of it yet (and also, here in Texas with all of the foundation problems, we wanted a house that had already taken care of most of it's settling).

Gah! Last October, I had put seed money down on a new townhouse in a new development, and the builder (William Lyons) shut the project down a few weeks ago. I got my money back, great! But I was really looking forward to moving into my shiny new townhouse. :(

I know the slowdown is a good thing, but I also feel like those of us who *can* afford these homes are kind of being punished.

@Bladefist: Yes, because if they're building in your neighborhood, it's profitable to build everywhere.

Seriously, though, it doesn't make sense to make more of something if you're sitting on a shitload of it already. This is especially true of houses, which require maintenance whether anyone lives there or not.

@Steaming Pile: My comment would mean wherever they are building houses still, it must still be profitable. Most people don't build houses for fun. I dunno why you decided to start following me everywhere, but glad to have a fan.

@ceejeemcbeegee: @ceejeemcbeegee: Thank the lord you got your money back than having to take possession of that albatross. You don't realize how much this saved your ass and pocketbook.

Building does not have to be profitable for it to continue. All that has to happen is the losses produced are less for building a home on a lot than selling the raw land.

i like how the article said sales rose.

@chenry: er, the headline.

@laserjobs: I know, I know! :)

The issue was that they couldn't sell the homes for the (exorbitantly high) prices they wanted, nor did they have enough qualified buyers. I only put down a deposit knowing that the price would drop dramatically by the time my phase came up. But rather than sell them for current market value (about $150k less), they shut it down.

The catch is, they HAVE to build out this development eventually (within 7-10 years, I think) because of how the permit to build was structured. Or, they can sell off the entire block of land, but it HAS to be used for residential construction. So, eventually, the homes will be built. The developer assures me that they will resume when the market swings back "next summer." I told him not to hold his breath.

In the meantime, I'm looking for a new place.

I dunno why you decided to start following me everywhere, but glad to have a fan.

best.comment.ever.

@ceejeemcbeegee:

Sorry you didn't get the exact home you wanted, but try to see the bright side: you got your money back and you can now use it to your advantage to buy more/better home for the same money as the market softens.

Good luck house hunting!

The planning, permits, and financing to start a housing development can take years, so some of these new places may be places that started that process years ago and are trying to determine whether to eat a loss by backing out or still be able to build and sell the things for current market rates.

Also, in my area, there are no places to build new developments left near the employment centers. Hence all new developments are way out in the fringes of the burb. Unlike before, people just don't want to drive a long way to get to work -- especially with gas prices going up.

@Bladefist: Well, your comments, many of which resemble cut-and-paste nonsense from the usual so-called "conservative" suspects, tend to stand out. Quite frankly, they often make my head hurt like cheap vodka the morning after. I guess I could just take a couple Excedrin and ignore them, but sometimes I just can't resist taking the bait.

@Steaming Pile: Think you mean copy-and-paste. Cutting would be stealing.

Maybe if you adapted a more conservative attitude, you could afford better vodka. I might even send some to my biggest fan.

@Bladefist: Didn't you read the article about vodka? There's no difference between cheap and expensive.