Looks like Austin is seeing some contraction in the new home inventory, which is a good thing, at least for now. The fact that Centex is backing out of a 1400 home project tells us more about the national housing market, and the financial problems of the large production builders than is does Austin’s market. Yes, we are experiencing a breather right now in Austin as inventory has risen and sales have slowed. But prices are still rising and all of our economic news is solid. Nevertheless, reslae owners looking to sell should be thankful that builders are pulling back some, as it means less compitition for resale homes.
Austin Business Journal
A plan that would have brought 1,400 new homes to northern Travis County has been eliminated as problems in the national housing sector force one of the region’s biggest builders to cut back on its projects.
Centex Homes has decided not to close on 465 acres of the 750-acre Pearson Ranch near Parmer Lane and State Highway 45. The company, which had announced plans in February to develop a 1,400-home community on the tract, said in a statement it would not close on the purchase of the land after a strategic review of projects companywide.
“While nationally many housing markets have experienced extreme shifts, Austin continues to remain in healthy standing with positive employment growth and supply and demand dynamics staying balanced by industry standards to date,” the company said in a statement, adding that it would continue to invest in future and existing communities around Central Texas that better align with Centex’s long-term objectives.
Like many national homebuilders, Dallas-based Centex has been trimming staff and delaying projects across the country amid the decline in the housing markets.