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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Jim McMannis who wrote (52998)	7/2/2006 11:14:46 PM
From: Elroy Jetson	Respond to of 116555

The profit margin on home building depends entirely on location and more specifically when the land was purchased. Pardee buys land a decade or so in advance in Las Vegas, yet their profit margin is only 9% to 15%. I'll be surprised if they and the other builders who went in on the BLM land in Henderson come out well during this cycle. I'm afraid the down-turn has probably pushed the Henderson BLM land out to next cycle. Pardee's profit margin in San Diego has traditonally run around 55% on some projects. But I think these projects have sold out. The new project are based on a newer and thus more expensive land base. I can't wait to see what the profit margin on that turns out to be - I'd be afraid to look. .