Weyerhaeuser limiting housing starts
Weyerhaeuser Co.’s home-building unit, Weyerhaeuser Real Estate Co. (WRECO) has announced that it will not pursue a policy of chasing sales through wholesale discounting. That means limiting their housing starts in some areas that have seen a decline in real estate demand such as Southern California, Las Vegas, Phoenix and the suburbs of Washington, D.C.
WRECO’s second-quarter home sales volume was down 10% due to rising contract cancellation rates. The company expects that to continue to be a challenge in the near future and is reassessing its pricing and incentive strategies in several markets.