In Depth Analysis: CalculatedRisk Newsletter on Real Estate (Ad Free) Read it here.

Sunday, September 16, 2007

Home Builders: What if they had a sale and nobody came?

by Calculated Risk on 9/16/2007 01:14:00 AM

From the LA Times: Buyer be where?

It was supposed to be a blowout sale for home builder Standard Pacific Corp.

For days, the Irvine company has been touting its "Mission: Possible" extravaganza in 49 communities throughout Southern California, with bonuses for buyers totaling as much as $20 million. Standard Pacific is aiming to sell 200 homes by offering mortgage loans with rates of less than 6% and other perks, including a free 42-inch plasma-screen television with every home purchase.

But in Victorville on Friday, the blowout looked more like a washout. Only a trickle of potential buyers showed up on the first day of the 10-day event.
It will be interesting to see if the Hovnanian 3-day sale is more successful. According to Bloomberg, Hovnanian "hopes to sell 1,000 homes this weekend" by offering incentives of up to $100,000.