Housingbear you could be correct. However, I think that the developers cope much better then resellers. We have seen that the developers were quite proactive slashing prices on existing stock, cutting back on staff, and severely reducing the number of homes per phase. Similarly developers have already taken writedowns on land purchased and eaten the deposits. In fact I was reading about a large purchase that a developer had given up on about 10 months ago, at the deposit, and is now rebuying that same land.
I guess we’ll see what will happen. I believe there very well may be some consolidation in the case of developers stock prices dropping to book value. I guess we will see.
Overall I believe that the developers margin is way more then any of us would estimate and that they are more apt to survive then many would believe.
