PulteGroup Inc. (PHM) announced the opening of four new communities in the San Diego market in response to the recovery and the growing demand in the region.
The four communities – Arbor Ranch, the Pines, the Willows and Amberly – are scheduled to open by April-end. While Arbor Ranch will be built under the Centex brand, the other three will be constructed by Pulte itself.
The positive rebound of the U.S. economy has inspired many homebuilders to recover their lost pace, even though the revival in the housing industry is still minimal. PulteGroup is very optimistic about the upcoming quarters and expects the overall demand condition to improve gradually and at a rate higher than the company’s internal business plan.
According to the company, traffic and signup rates in its communities are also satisfactory, despite the absence of the Federal tax incentive. In fact, from January to February, PulteGroup realized a 13% month-over-month pick-up in traffic.
Moreover, the San Diego County region always had huge demand for real estate owing to its high industrial association. The region comprises a diversified economy with biomedical, technology and military industries.
However, Pulte’s performance in 2010 was not up to the mark, although it showed improvements over 2009. Net loss narrowed to $1.1 billion or $2.90 per share from $1.2 billion or $3.94 per share in 2009. Consolidated revenues escalated 12% to $4.57 billion driven by a substantial number of home closures and a slight increase in the average selling price.
Based in Bloomfield Hills, Michigan, PulteGroup Inc. is engaged in the homebuilding and financial services businesses primarily in the U.S. and Puerto Rico. The company’s direct subsidiaries include Pulte Diversified Companies Inc., Del Webb Corporation and Centex Corporation. With the PulteGroup-Centex merger in 2009, Pulte emerged as the largest homebuilder in the country leaving behind key competitors like DR Horton Inc. (DHI) and KB Home (KBH).
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