Wednesday, May 23, 2007

Another example of builders blowing out

William Ryan is in court with one of the Inland Group's affiliates over $500K in earnest money. Ryan decided to bail out of a development project in New Lenox, which until recently had been a very hot market. Inland won't agree to release the earnest money. (Apparently it is holding the money instead of a third party because no escrow agent is named in the lawsuit according to the Cook County Circuit Court file.) The story on the Inland/Ryan dispute reminds us that developers have sold 35% fewer homes in Q1 of 2007 compared to 2006. Ow.