Sunday, October 7, 2007

No Bids for SoCal Land

This is an interview published on the OC Register site with Tom Reimers, executive VP at land broker O’Donnell/Atkins from Irvine.

What’s the market for raw land in SoCal and Orange County today? What’s the outlook?
Tom: In general, the residential raw land market is non-existent. Land values and deal flow for other types of product are more stable right now, but the credit/financing crunch is squeezing those values as well.

How are prices?
Tom: It’s hard to say. With few to no buyers, it’s hard to say what land is worth. There are no transactions to set a benchmark. In some tertiary markets, the land is worthless from a residential development standpoint due to costs to develop being higher than the land value.
Related: Homebuilders Liquidate Assets in Desperation Sales.
Hovnanian spokesman Jeff O'Keefe said the company offered discounts as high as 30 percent.

D.R. Horton also threw in a washer-dryer and $2,500 toward closing costs, Moran said.

``Adding a credit toward closing costs still allows them to show the highest selling price they can,'' Moran said.

Next, Mortgage Slump Hits Home Decor Industry.
At the Annual Furniture Mart, Worried Manufacturers See the Mortgage Slump's Effects.

HIGH POINT, N.C. (AP) -- Doug Schock shook his head in disbelief while gazing at the empty bank of elevators, typically full as they shuttle thousands of buyers between dozens of showrooms filled with the latest styles in sofas, bedroom sets, and dining room tables and chairs.

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