The housing industry has been buzzing over the recent headlines that Pulte Homes and Centex Homes are merging. Pulte will buy Centex in a $3.1 billion, stock for stock agreement. The merger of these two companies would result in creating the nation’s largest builder with 39,000 closings in 2008. We are excited to see the what impact the company will have on the housing industry, whether positive or negative. How could it be negative? Well, these two companies are merging to ensure their survival and prevent the possibility of bankruptcy. Combined, they have many purchased lots and inventory homes throughout the nation. While Pulte will be the nation’s biggest builder, is bigger a good thing with these factors? Builder magazine has published an in-depth article with numbers and statistics and interviews that I suggest you read to get a full understanding of this breaking news.
Whatever the impact the new Pulte Homes has on the nation, Atlanta is definitely a market that will be affected. Both Pulte and Centex have new home communities throughout metro Atlanta. In fact, they are two of our biggest builders. In the 2008-2009 Book of Lists from the Atlanta Business Chronicle, Pulte is ranked #2 in Atlanta’s Top 25 Home Builders and Centex is #14. Without a doubt, this merger will move Pulte into the #1 position on next year’s list. What kind of impact do you think this will have on the many local home builders that help make up the Atlanta real estate industry? Is the Pulte Homes and Centex Homes merger a positive or negative for the home building industry?