We also thought builders had learned their lesson, and would not overbuild, and would stop buying overpriced land at the top of the cycle. Once again, builders who’ve been through several downturns failed to see the slowdown. Why didn’t they see it coming? Don’t they have economists on their staff, are they in denial, what is the explanation? Why did Toll and two other groups buy remote Phoenix desert land for $56K/acre earlier this year? Sheer stupidity. You’d think Toll would have learned from the last cycle not to do such a stupid move.
