BREAKING NEWS!!

Pulte Homes bought Centex Homes for appx $1.3Billion in an all stock deal today, April 8th, as reported by CNBC.

This two companies combined would now be the LARGEST homebuilder in the US.  It is reported that the companies would save appx $350 Million dollars a year. 

Here is my question:  Is this coming from a position of strength and that the market is turning around and we have hit bottom?  Or is it a last ditch effort to try to save the 2nd and 3rd largest home builders?  These builders have already cut costs, cut their workforce significantly and are still losing money.

It was further reported that the owner of Centex approached Bill Pulte about 2 months ago to join forces with Pulte.  Pulte announced today, April 8th, that it will buy Centex in an all stock deal.

In an industry will little mergers/buyouts exist due to the different styles of building, family owned and long legacies and companies built on reputation.. will this start a flurry of acquistions and mergers??  Stay Tuned!

Derek Gutting, The Gutting Group, Keller Williams Realty, 317 846-4888 direct, dgutting@kw.com