Daily Real Estate News  |  November 9, 2009  |   Builders on the Prowl for Property
Home builders who sold or walked away from properties at the height of the housing meltdown are back in the market for choice parcels to develop in places like Las Vegas, Southern California, and Orlando, Fla.

"In the past, (builders) had really been the ones that had been feeding the market and selling lots to investors," says Tom Dallape, a principal at The Hoffman Co., a land brokerage firm based in Irvine, Calif. "Now all of a sudden they are rushing back in."

Among builders buying aggressively are Ryland Group Inc. and Meritage Homes Corp. Pulte Homes Inc., which acquired Centex this year, is working off that builder’s inventory.

Analysts observing the market point out that these purchases could be regrettable. "There is certainly some risk that if the market tails off again or we start to see cancellations pick up, some of those deals that previously penciled may not pencil anymore," says Megan McGrath, an analyst with Barclays Capital.

Source: Associated Press, Alex Veiga (11/06/2009)