BusinessWeek Housing Cover Story Special Saturday, 06 October 2007 **Housing: That Sinking Feeling **
Homeowners are getting slammed as builders slash prices. The big question: Will this shock treatment help hasten the end of the painful downturn?..KB cut list prices by $25,000… For homeowners who jumped in at the height of the boom, the discounts aren’t so good…On Sept. 14, Hovnanian Enterprises Inc. kicked off a 72-hour Deal of the Century, in which it slashed prices by as much as $100,000 in 19 states. That same day, Standard Pacific Corp. launched its Mission: Possible campaign in 49 communities across Southern California, promising $20 million in total discounts. And on Sept. 29, D.R. Horton Inc. auctioned off 53 homes in San Diego with bids starting at $150,000, half off the list price…On Sept. 25 the country’s No. 2 builder by homes sold last year, Lennar Corp., reported a $513.9 million quarterly loss, the biggest in its 53-year history. And while there have certainly been other influences on the market, builders bear a lot of the blame for their woes.
they sure do