It was announced today that another national builder no longer exists as it was. Centex was a major builder all around the Charlotte Real Estate market. Some of its developments are Southampton, Wesley Oaks, Stone Creek Ranch and Ardrey Chase to name a few. Stone Creek Ranch and Ardrey Chase still have lots and homes under construction. Why the buyout?
As the real estate market contracts, naturally each builder must assess its business portfolio. As I write this it is based on my market observations and no particular insight into either company. Pullet, also the owner of Del Webb, dominates the market for seniors and ranch homes.This is a very strong segment and their business position is enviable. The baby boomers are retiring and the demand for 1 story homes will be on the rise. Pulte does not have a Strong position in Charlotte Real Estate fro larger 2 story homes and this was the Centex market niche.
Centex began in South Charlotte a decade ago building Southampton. They were still developing their market niche at that time and there is a mixture of homes within the community but by far there are 2 story homes. As Centex grew, so did their homes. This can be seen is Wesley Oaks that was completed 2 1/2 years ago. While Wesley Oaks was nearing completion, they began building homes in Stone Creek Ranch then Ardrey Chase.
Then the market crashed. The demand for the much larger homes were now difficult to finance and their market ground to a halt. Pulte now steps in. Pulte has a challenge in front of them but apparently is secure in their demand for larger homes. Pulte now will own the Centex brand and merge their floor plans into Pulte.
I am sure more Charlotte Builders are feeling pressure to realign their companies; it is a matter of survival. Only time will tell what Charlotte New Home builders will weather the storm.