They will take hit’s and lose some money but this is one of the smartest homebuilders out there. They will do what they always do and break ranks, give away all the options, lower prices and get out from under their inventory much to the dismay of the other builders. They will also continue to force contracters to take a bite of the S**T sandwich. Homebuilders stocks are doing nothing but tanking this year but in a few years after the bubble plays out, this is one company I’d consider buying stock in.
I visited a Lennar development a few weeks ago and wrote about it another thread. They were nicer, bigger, cheaper than their competition and had virtually no options other that flooring. A visit to three other builders nearby revealed some antimosity towards Lennar’s aggresiveness, one salesperson pointing out that lennar was lowering prices in each phase which she felt was a diservice to earlier phase buyers and the market overall. What a bunch of crap, they want to survive through the down cycle and being realistic is the only way.
