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Wednesday, March 5, 2008

Legendary Builder Says (East Coast) Slump is Near End

From Realtor Magazine Online, Daily Real Estate News March 5, 2008

Florida home builder Arthur Rutenberg, 80, says you can take it to the bank: The home-building bust is at or near bottom.

"Anyone who buys a home right now will say in five years, 'I'm glad we bought when we did,' " Rutenberg says.

Still active in the business, the developer spoke while inspecting a newly completed $1.5 million Arthur Rutenberg Homes luxury model in Orlando. Rutenberg remains chairman of Arthur Rutenberg Homes Inc., which has 32 franchised home building operations in Florida, Georgia, and South Carolina.

Rutenberg said the current building bust is especially deep because the run-up in prices and sales that preceded it was so robust. As a result, it takes a little longer to get prices and annual growth "back to a long-term trend line," he says.

Rutenberg franchises closed last year on 726 homes valued at about $400 million, down from a peak of more than $600 million in 2005.

Source: Orlando Sentinel, Jerry W. Jackson (03/04/2008)

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