Texas Homebuilding Update

Dyn-o-mite! Joined: 09 Jan 2009 Posts: 351

Heard some interesting news:

Pultex is down to 1600 units in their Texas region - they haven 't bought land in 18 months

Lennar - is under 1400

KB - they are centralizing alll functions to Austin - their Houston GM will be the odd man out, they don't have a DFW division prez - they will be lucky to do 1200 units in Texas

Horton - 2500 units and still buying land

Cherry Bomb Joined: 07 Oct 2008 Posts: 118

Houston Builder wrote:

Heard some interesting news:

Pultex is down to 1600 units in their Texas region - they haven 't bought land in 18 months

Lennar - is under 1400

KB - they are centralizing alll functions to Austin - their Houston GM will be the odd man out, they don't have a DFW division prez - they will be lucky to do 1200 units in Texas

Horton - 2500 units and still buying land

Pultex in Dallas is buying land. They have closed a ft worth property, and a allen property in the last 50 days. They have several more under contract. So the Dallas divison is buying. They closed 3 pieces last year. FYI.

Dyn-o-mite! Joined: 07 Nov 2008 Posts: 351 Location: Texas

Probably should be called CENte in Texas since it appears the old Centex managers are the survivors. Also refers to cents on the dollars which is what they done with the value of the old companies.

CENte is buying land in DFW and appears to be stabilizing the 3rd or 4th ranked builder. They are much slower moving than Horton, but not quite as messed up as some of the other publics (Meritage, Ryland, Beazer, KB).

Posted: Sun Jan 30, 2011 11:00 pm

DR Horton is buying into communities all around Houston. They are even buying communities with only 10-20 lots. Normally a small number of lots cannot support a model. We'll have to wait and see what they do.

Dyn-o-mite! Joined: 09 Jan 2009 Posts: 351

Quote:

Pultex in Dallas is buying land. They have closed a ft worth property, and a allen property in the last 50 days. They have several more under contract. So the Dallas divison is buying. They closed 3 pieces last year. FYI.

Pultex or Cente DFW is definitely doing more than they are here - Allen is a great submarket, wow

Horton continues to be aggressive - they are just trying to turn lots into new cash - not a bad idea

KB has moved out of the affluent markets all over Texas - here, they have no positions in Katy, none in Frisco/McKinney/Collin County.

Their strategy is to buy the cheapest lot in subdivisions that will be future slums. They won't last long since they will always be competing with foreclosures.

Dyn-o-mite! Joined: 07 Nov 2008 Posts: 351 Location: Texas

Horton has bought small groups of scattered lots around DFW as well. They typically just spec them out and sell out of nearby neighborhoods.
It must be working because they have been doing it for a couple years now.

Dyn-o-mite! Joined: 09 Jan 2009 Posts: 351

Nelson wrote:

Horton has bought small groups of scattered lots around DFW as well. They typically just spec them out and sell out of nearby neighborhoods.
It must be working because they have been doing it for a couple years now.

Wow, here is a link to Horton's DFW map. They are building right next to Shops at Willow Bend and Legacy Town Center. Talk about A+ locations. I counted 35 communities in the Frisco/Allen/Plano/McKinney areas.

http://www.drhorton.com/Where-.....o-Map.aspx

Compare KB Home in DFW - all their communities are in south Dallas that are poor, mostly african american communities or poor parts in outlying areas of Fort Worth. I heard KB's management is undergoing a meltdown here and in Dallas - this disparity in strategy demonstrates why.

And who can forget the Kyle Davison debacle with the Martha Stewart community here in Katy that had to be given away and their proud line of $60K houses.