Just weeks after Centex announced a bulk land sale of 8,500 lots across 11 states; the company disclosed that it intends to exit Michigan by yearend as it continues its efforts to move to an "asset-light" model.
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, a corporate communications staffer at Centex. She offered no specifics regarding the disposition of land or the undeveloped portions of 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.
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. Senior management will hold a conference call with analysts on Thursday, May 1, at 10 a.m. EDT (9 a.m. CDT).