California Headache Continues

Last night I sent out a notice to a number of friends and colleagues soliciting their support for the Chicago Police Memorial Fund as a run in that city’s marathon in October.  One well connected supporter in California stepped up right away.  I took the opportunity to thank him and ask how the market was really doing.  He’s an optimistic guy by nature, so I will keep his name confidential.  This was his quote:

“Believe the press in certain parts of California - if you're within 25 miles of the coast you're generally o.k. (exception: downtown San Diego).  Anything inland is in trouble.  And the Central Valley is a total bloodbath. I see a huge number of small- to mid-size builders going under in the Valley.  They're fighting to stay afloat as it is, and that's without the flood of foreclosures that is coming around the bend with great force.”

My assumption was that we were only hearing the bad news.  Perhaps we still have a ways to go.  So, more than ever builders need to find ways to follow-up on every lead and traffic unit.  Consider also how you can drive other revenue.  Fulton Homes in Phoenix claims a 61% increase in options revenue after making some big changes in their options technology and processes.  See the article in TecHome Builder Online at: http://www.techomebuilder.com/news/19331.html.