As you may already know, KB Homes has pulled out of the region, Shuttering the Middletown Woods sub-division and putting the land they hold up for sale. It was a blow to local builder confidence, and now it looks like there’s more evidence of how much some builders are struggling in this tough market: Caruso Homes has filed for Bankruptcy.
Supposedly they are doing this to re-structure rather than close-up shop. If it’s a way for them to bring down their prices, great. Take a look at their current prices, and you’ll notice that they’re flat out too high. Filing bankruptcy sheds light on an interesting phenomenon: Builders profits have been cut to the core. Bankruptcy means that Caruso cannot slash their prices any further at this point without drastic measures.
Will this allow Caruso Homes to drop their prices further? Definitely! At the same time, I’m sure it’s going to upset the folks they owe money to. ($500,000 from 84 Lumber alone!). As soon as Caruso announces their price reductions, I’ll let you guys know. Stay tuned for more on that!
Related Links:
KB Homes Pulls Out of Charles County
Are New Construction Price Negotiable?
New Homes in Waldorf, MD: Autumn Hills Subdivision
“Finding it All” When Buying a Home
~Jonathan Benya
www.teambenya.com