Saturday, July 28, 2007

Construction Permits for New OC Homes Crashing


Prudence.

Demonstrating prudence when running a real estate business deserves acknowledgement. Business leaders respect that. Employees appreciate it. And investors? Well, they pretty much expect prudence to be a given from the start, and they're easily pissed off when a lack of sound business judgement taps into their hard earned resources.

And let's face it. Investors in home building activities, if there are any left, have had good reason to be disappointed. Finally, homebuilders may be putting their hammers down long enough to listen to their investors and take a look at the residential real estate market.

Home builders in Orange County, California are finally demonstrating some much needed caution - and common sense. The LA Times reports that permits for new homes crashed by 85% from the previous year, from 225 in June 2006 to only 1,448 in June 2007. Seems as though homebuilders have placed some weight on actually being able to sell the homes they build at a reasonable price, rather than just build like no tomorrow and decide what to do about pricing and incentives later on.

Good call, homebuilders.

Now, for the love of God, can you please do something about this idiotic page on your website (if only you would take it down until the housing market crash subsides)?

"It's a great time to buy."

Is it? Is it really?

1 comment:

cyranodabum said...

"from 19,637 in June 2006 to only 9,536 in June 2007" - that's a 51% drop, and it represents the statewide number.

The 85% drop for OC is from 1,448 to 225 permits.

Only 225 permits - ouch.