Centex Corporation Firm Analysis Essay Example | Topics and Well Written Essays - 500 words

Centex Corporation Firm Analysis - Essay Example Decrease in the customer's affordability for initiating buying inventory. Customers were in a mood to lay off the inventory to overcome the mortgage demands. The high inventory costs to bear with have depleted the market from selling. Thus, there were very few takers for the inventory and lots of unsold inventory was left with no takers. The decrease in buying and selling was due to low confidence levels of the customers who were affected by the adverse market conditions. Due to the financial markets turmoil, customers are ambiguous to venture out to buy new properties. Many prospective customers who are willing to buy new homes were made to shelve their ideas as they were unable to dispose their existing properties. Due to severe mortgage lending crunch and financial institutions tightening the screws to lend loans has created difficult times for customers to take loans. The above depicted issues with respect to customers have affected Centex's housing. Revenues of centex decreased primarily due to decreases in units closed, and the revenues are largely offset by increases in discounts and lower prices experienced. The total closing numbers on sales decreased by 18 percent and total revenue decreased by 32 percent compare to 2007 and 2006 (builder 100). High competitions in the market as customers were trying to sell off their old inventory due to mortgage debt pressures.