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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: flint who wrote (25895)12/12/2004 10:18:53 PM
From: Elroy JetsonRead Replies (2) of 306849
 
The flaw in your belief, that Home Builders make more money when land prices decline, is two-fold.

First Home Builders have large land inventories on which they take enormous losses if land prices decline.

Second, the demand for homes declines precipitously when home prices decline. Many people with more homes than sense unload into the declining market.

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