Kentwood Company Greenwood VillageDavid Mandarich, President and COO of MDC Holdings, the parent of Richmond American Homes, gave a bullet point address to the Kentwood Company sales group yesterday morning.  Mr. Mandarich's comments were most insightful and enlightening.  

Below are some of the straight-forward comments.  


  • The overall attitudes of homebuyers are better. (This is hugely significant to the housing market recovery.)
  • We are all in a food chain.  Referencing a quote by Warren Buffet, when the bottom moves up, everything else moves up.  (The meaning is that as the lower end price range of homes has gotten hotter than a firecracker, the sales activity there has had a ripple effect on all price ranges above.)
  • Building hard costs are going up.  Cities are raising their fees to builders, etc.  
  • Demand for attached housing is becoming stronger.
  • There's not a lot of capital for home builders.
  • 20% of American homeowners are still "under water".  (Meaning they cannot sell their homes for enough to cover the outstanding loan balances.)
  • Currently the largest group transitioning their housing situation is 65 year olds and older.  
  • Richmond is building more ranch style homes today whereas twenty years ago they hardly built any.
  • Richmond American Homes is putting lots of inventory (spec homes) in the ground whereas last year they did essentially none.  
  • Douglas County in Colorado is the 6th or 7th strongest housing market in the country.
  • Home starts in 2013 for Richmond will be about double the starts of 2012.  
  • Houston, Washington DC, and Phoenix are the top three recovering markets.  Denver is about 10th.  

For more information about the Denver housing market, click here...