Fewer condo buyers
Interesting comments about customer traffic at sales centers from WCI president & CEO Jerry Starkey during WCI's 2005 earnings call.
WCI released 2006 revenue and gross margin guidance on Friday and is scaling back tower revenue to 35 percent and upping traditional home building to 53 percent of 2006 revenue. This revenue mix shift represents a significant change from 2004 when towers represented 45 percent and traditional home building 43 percent of WCI revenues.
"In January, traffic was down 49 percent from a year ago and down 44 percent for the first eight days of February"
This shift in focus by a respected developer like WCI is something that all real estate investors should factor into their investment decisions. It is particularly important throughout Florida as the overbuilding in the Miami area is bound to impact the entire state.
Luxury condos' allure wanes [News-Press]