Friday, April 17, 2009

JLS Custom Homes cuts prices to clear out inventory

From the Oregonian:

JLS Custom Homes, one of Oregon's largest home builders, said Thursday it will liquidate 70 homes to clear out its inventory as sale prices continue to plummet across the region.
Owner Jason Sage said he expects the Beaverton-based company's revenues will drop to about $30 million this year, an 80 percent decline from the boom-time peak. But he said the company will not follow other major Oregon builders into Chapter 11
bankruptcy. "We have enough of a relationship with the banks we can make this work," Sage said.

Sage said he wants to liquidate the homes because of the slow sales pace and small prices that have dropped up to 35 percent below his original expectations. He'd rather unload the homes at a loss than continue to pay construction loans until the market improves.