The Wall Street Journal published this story about the challenges builders are facing with the high cost of land that they have on their books. Some national builders have walked away from their deposits they had on land they had option contracts on for future housing projects. (WSJ may require a subscription. Please e-mail me if you need a copy of this article).
It’s interesting to note that this softness in land prices and housing comes just as the City of Plymouth is getting ready to make way for another 1200 acres to be developed to varying densities in the Northwest part of the City. Many of those land owners hoping to cash out for top dollar are going to find a very different marketplace today that what the news media was report 6-12 months ago.