…previously valued at $1.3B for $525M is a huge deal for people who bought “Lennar” homes recently:
“For example, what happens to homeowners in a Lennar subdivision when their builder suddenly bails out at 40% of what they just paid for their identical home?
“Think of it this way: if you paid $250,000 for your Lennar home, it instantly become worth $150,000.”
I remember earlier this summer hearing an economist with CAR talk about how areas with lots of new home construction were inevitably being hit the hardest because new home builders were much quicker than home owners to reduce price based on market conditions.
Interestingly, it sounds like there could be more of these big deals in the near future:
“But the deal also suggests that bargain hunters on Wall Street might be willing to step in and try to grab some prime properties at a fraction of their previous value. “