Beazer Homes, the Atlanta based homebuilder has posted a $48.1 million profit in its first fiscal quarter.
That is obviously hugely encouraging after enduring a loss of over $80 million in its prior fiscal year. Beazer has a $101 million tax gain to thank for their successful first quarter, as they cater primarily to first time homebuyers, who, have been able to take advantage of lower mortgage rates and the stimulus bill which included a healthy tax credit of $8,000.
Operating in 16 states, Beazer’s overall new home orders were up by 37 percent. The number of buyers who backed out of contracts also dropped, from 46 percent last year, to 27 percent. Both of these are indications that buyers are becoming more confident. The improvements with new sales and higher percentage of fulfilled contracts obviously encourage investors, who now have increased optimism for the sustainability of the homebuilding giant, despite high unemployment and other economic challenges.
Tina Fountain is Broker Owner of Tina Fountain REALTORS, an Atlanta real estate company, for more information visit tinafountain.com.
