Homebuilder Bankruptcies: Scaring Buyers, But a Builder’s Opportunity

I must be listening to too much NPR these days — that or their reporting too much on the homebuilding industry’s woes! A recent spot on the radio (listen here and see a summary) hit a bit too hard to home. It was a story that originated here in Chicagoland about some of our larger homebuilders that were going bankrupt or having dire financial problems.

The gist of the story was that buyers of new construction homes were nervous to purchase from some of the larger builders as many were either going out of business or drastically curtailing their business. The story told the tale of one family who drove past their half constructed home, only to hear their newly installed furnace furiously pumping heated air through all of the open windows spaces — the actual windows were never installed!