“A New Low for Land Prices in California”

Those were the words that jumped out at me from today’s Wall Street Journal. Read it for yourself in an article titled “Developer Sells Land Dirt Cheap to Reap Tax Benefits” in the Marketplace section of today’s Journal.
Fort Worth-based D.R. Horton, the nation’s largest home builder by unit volume, is selling off thousands of lots in outlying markets while holding on to land with development potential closer to major metropolitan areas. The parcels closer in are located in markets that are expected to rebound more quickly. The sales figures cited in the article indicate that Horton sold 2,000 lots in Southern California for $7.8 million, a 90+ percent markdown from the estimated $110 million purchase price. In a separate transaction, Horton also sold a 4-acre parcel near San Diego for $4.4 million, a 75 percent markdown from the 2005 purchase price.
Also worth noting in the article is the figure on new-home sales, which are now at a 17-year low.