Southern Maryland Real Estate Blog: Another One Bites the Dust: Caruso Homes Files for Bankruptcy

June 29, 2008

Another One Bites the Dust: Caruso Homes Files for Bankruptcy

As you may already know, KB Homes has pulled out of the region, Shuttering the Middletown Woods sub-division and putting the land they hold up for sale. It was a blow to local builder confidence, and now it looks like there's more evidence of how much some builders are struggling in this tough market: Caruso Homes has filed for Bankruptcy.

Supposedly they are doing this to re-structure rather than close-up shop. If it's a way for them to bring down their prices, great. Take a look at their current prices, and you'll notice that they're flat out too high. Filing bankruptcy sheds light on an interesting phenomenon: Builders profits have been cut to the core. Bankruptcy means that Caruso cannot slash their prices any further at this point without drastic measures.

Will this allow Caruso Homes to drop their prices further? Definitely! At the same time, I'm sure it's going to upset the folks they owe money to. ($500,000 from 84 Lumber alone!). As soon as Caruso announces their price reductions, I'll let you guys know. Stay tuned for more on that!

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00e54ef03e89883300e553959d998834

Listed below are links to weblogs that reference Another One Bites the Dust: Caruso Homes Files for Bankruptcy:

Comments

You can follow this conversation by subscribing to the comment feed for this post.

Verify your Comment

Previewing your Comment

Posted by: |

This is only a preview. Your comment has not yet been posted.

Your comment could not be posted. Error type:

Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.