In business and investing following the lead of the "big boys" is a popular strategy. Right now the big boys of building are all setting the same example: BUY! BUY! BUY! Is there a bull on the housing market horizon?"Builders, including Lennar Corp, KB Home, Hovnanian Enterprises Inc, Meritage Homes Corp., are back buying and developing land again. Lennar spent $162 million on new land in the second quarter and will spend at least $200 million more by the end of the fourth quarter, JP Morgan analyst Michael Rehaut wrote in a note to clients.
KB expects to spend $300 million on land and $400 million on land development this year, Rehaut said.Hovnanian is working on a land development joint venture, company spokesman Jeffrey O'Keefe says. And Meritage is 'beginning to shift from defense to offense,' looking to buy land in the second half of the year, wrote Wachovia analyst Carl Reichardt after meeting with Meritage management.
In theory, buying land now is a smart move, said Todd Lowenstein of HighMark Value Momentum Fund, which owns 187,000 shares of Pulte Homes Inc.'You have to be a predator in these down markets to position yourself for the upturn,' he said."
For the full Realtor Magazine story: http://www.realtor.org/RMODaily.nsf/pages/News2008071102?OpenDocument
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