Centex "One Day" Sales
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Centex is now offering "One Day" Sales.
Atlanta was first followed by "almost any Centex Northern California neighborhood".
Here is the Atlanta Ad:
Centex cutting prices up to $60k in Atlanta.
One day sale Saturday 01-14-2006
Obviously things could not possibly be better in Atlanta.
Here is the California Ad.
It is a 12 hour sale for January 21st.
"Turn off the tube. Drop the rake. Next Saturday is your chance to buy a Centex Homes in almost any Centex Northern California neighborhood and take $40,000 to $100,000 off the price on selected homesites. Plus 4% Broker co-op fee. Ask community sales representatives about special 4% broker co-op 1/21/06 only. Promotion is available on select homesites only and varies by community. Some portion of discounts may be tied to utilizing a preferred lender. Communities in San Jose will not be participating in this promotion. Please see individual sales offices for full details. Promotion ends on Saturday 1/26/06 at 10pm. New construction or one of our ready-to-move-in homes, it doesn't matter. Next Saturday's the day. 10a.m. till 10p.m. is the time. Every model will be open in each of our neighborhoods. So why not let the leaves blow into the neighbor's yard, you're gonna be moving away."
Obviously things could not possibly be going better for Centex in California either.
How long before these become "Weekend Sales", followed by "This Week Only Sales"?
Anyone that bought a "selected homesite" $100,000 ago, is now underwater by more than $100,000, not to mention a 6% real estate commission. My estimate is that those top end buyers are now $150,000 in the hole.... and ticking. Who wants to buy a used Centex home when they can get a new one $100,000 cheaper?
Cash out refis for someone who is strapped at the high end? Forget about it. Centex just repriced benicia • brentwood • modesto • mountain house • merced • san ramon • santa clara 10% lower. Anyone that had a 100% loan is now 15% in the hole (counting commissions if they had to sell).
This is just the start.
Mike Shedlock / Mish
http://globaleconomicanalysis.blogspot.com/
