A Port Angeles home builder has many spec homes on the market, and it apparently has begun to catch up with him. Nine of his homes were foreclosed on September 26th, the result of two financial institutions foreclosing on their lines of credit.
Glenn Terra Corporation is one of the large home builders in the Port Angeles area, and has been aggressively building spec homes. Unfortunately, now is not a time to build spec homes that sit on the market with no buyers.
Normally a builder will have a large line of credit that he will draw on as he builds spec homes, which he hopes will sell in a healthy market. But in this past year with so many buyers just not showing up in Port Angeles, the carrying costs alone for a spec home with a line of credit can be far too much of a burden. It is estimated that Glenn Terra has over two dozen spec homes on the market. The foreclosure of nine homes may be the first crack in the dam for this builder. I hope the best for this builder, and for all builders in the area, but it is an especially tough time for new home builders.
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