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To: Elroy Jetson who wrote (52996)	7/2/2006 5:17:15 PM
From: valueminded	Read Replies (1) \| Respond to of 116555

Elroy: I would imagine the "top line" would be comparable to my construction - do you have a list of what comprises topline then I could compare. At any rate, someone indicated that the reason for the discount was that Pardee could build for about 50% of typical small builder. I was having trouble reconciling with what I do so I wanted to try to understand it better. The numbers you quote seem much more in line since it would mean they build for about 15% less then my "one up" construction which given quantity discounts and captured crews, I could believe.

To: Elroy Jetson who wrote (52996)	7/2/2006 5:41:21 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 116555

What's a traditional profit margin for a builder in the southwest?

To: Elroy Jetson who wrote (52996)	7/3/2006 3:10:19 AM
From: XBrit	Read Replies (1) \| Respond to of 116555

<Pardee can build homes for something like $45.43 per square foot ... Californian's are accustomed to prices exceeding $150 per square foot as normal, while some have been quoted prices as high as $300.> Are you saying that the entire state is getting ripped off on homebuilding costs? If not, what is your point? Is it that Pardee (whoever they are) has some implausibly miraculous cheap system which bypasses the labor, materials and compliance costs of everyone else? You're claiming a gigantic difference and not explaining it.

To: Elroy Jetson who wrote (52996)	7/3/2006 11:09:48 AM
From: John Vosilla	Read Replies (3) \| Respond to of 116555

I take it folks paid way too much for those $40K kitchen rennovations or new homes in bubbleville USA? The repercussions of all this discussion are enormous.. Makes Flex's well thought out commentary today sound like it just scratches the surface of the even deeper problems.. It does tie the explanation of why new homes are still dirt cheap after the huge rise in construction costs in exhurbs like Houston even though it has the strongest economy in the nation now. Also helps explain why in 'normal' times new suburbs tend not to appreciate until the area is close to build out and no large tracts of land are available to the national builders. This makes me think suburbs of markets like Phoenix are going to take an incredible tumble in values.