Builders are always a little ahead of the market, on the way up and down. I’ve noticed the same thing also.

During this past boom, in 2003 and 2004, builders were behind the curve on the way up. They did not anticipate the bull so they left a lot of money on the table for the flippers. Then in late 2004 and 2005, they quickly corrected.

I expect the large builders such as Pardee, Lennar, KB Homes, etc… to adjust prices downward quickly in new developments. They may be reluctant to do so in close-out phases but when a new community (with a new name) is built, they’ll be at market prices.