Just weeks after Centex announced a bulk land sale of 8,500 lots, the company continues its efforts to move to an “asset-light” model and confirmed its plans to exit the Michigan market by year’s end.
The company has built 4,400 homes in the Detroit metro market since 2001 and currently has 19 active single-family and townhome communities in the area. The homes range in price from the $100,000s to the high $200,000s.
The plan is to complete work on sold homes that are in the process of being built, and continue the sale of homes, according to Julie Hines in Centex corporate communications. But no specifics were available regarding the disposition of land or existing communities. “We are still working on the transition and will be throughout the year,” Hines told Big Builder. “We don’t have those details yet.”
“Market conditions remain difficult, and we expect the housing industry correction to continue this year,” Hines continued. “Detroit has been a good market and we’re proud of the homes we’ve built there, but unfortunately it does not offer the scale and scope that matches our long-term strategic objectives.”
The company has about 70 employees in the area and their jobs will be phased out over the course of the year as the company’s commitment to the market adjusts.
Centex will release earnings for the fourth quarter of fiscal year 2008 on Wednesday, April 30, after the close of trading on the New York Stock Exchange. The company will hold a conference call with senior management on Thursday, May 1, at 10 a.m. EDT (9 a.m. CDT).
Learn more about markets featured in this article: Detroit, MI.