K Hovnavian slashing development

I moved this to its own story, from today’s “Links” post, because they represent the second builder (Ryan was first) to announce major changes. Interestingly, while local builders have seemingly made some significant changes to their pricing and development strategies, it is the national builders who seem most affected. Perhaps the smaller builders are more nimble and able to alter their course? Were national builders more prone to over-extending themselves? I don’t yet know, but remain interested in these developments.

The Greene development is K. Hovnavian’s only development (of which I am aware) in the Central Virginia region. Ryan is everywhere in Central Virginia. Their Four Seasons development also represents something our area desperately needs – housing designed for the 55+ segment of our population – so they do have that going for them.

Read the memo here.

These new market conditions have affected us in many ways and will continue to affect us in the months ahead. In the area of land acquisition we have been re-evaluating our current land positions and the contracts for new land in the light of these new conditions. Many of those contracts no longer make good financial sense when you factor in lower prices and a slower sales pace.

Time will tell …

Inman has the story as well.