The $100K House: Builders Go Cheap To Compete With Foreclosures

Home builders, battered from losing half of their market share in the past two years, are fighting back against business-stealing foreclosures. As James R. Hagerty and I detail in today’s Journal, they’re cutting prices, promising to finish houses sooner and warning about the risk of buying a foreclosed home. “We know that our competition is not the other builders,” says Stephen Palmer, chief financial officer of Bowen Family Homes Inc. in Duluth, Ga. “Our competition is the near-new foreclosures.” Knowing that, builders are stressing speed, working frantically to finish homes faster for people who are looking to cash in on the federal home buyer tax credit, which expires April 30. They’re also looking to compete on price, typically a big lure with bank-owned homes. [Read this article]

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