Downturn Analyst in the News: Unfinished Homes Worry Neighbors
“Many are teetering on the edge,” said Adria Huang, research director at the New York-based Downturn Analyst, which reports on homebuilder and real estate defaults, “and the general consensus is that there are likely to be more closings … in the near future.”
Often, when a builder goes out of business or files for bankruptcy, it leaves behind unfinished projects, which could sit for some time before being taken over by lenders or sold to other builders, she said. There can be little demand for those projects these days, because they are speculative, and few people are buying.
“Besides,” Huang said, “the builders and developers which might be interested in these projects are likely to be facing financial distress themselves.”
We were just cited on the Charlotte Observer which featured C.P. Morgan Homes - a homebuilder which closed last month, leaving behind unfinished projects. If you have questions about homebuilder bankruptcies, don’t hesitate to email Adria Huang at adria@thedownturnanalyst.com (The Downturn Analyst is our sister site).
