Pulte Homes Inc. is buying Centex Corp. for $1.3 billion in stock in a deal that will create the largest U.S. homebuilder. This will give Pulte a large holding of land in Texas and the Carolinas, two of the most resilient real estate markets, and a presence in 29 states.

This purchase supports the buzz that the housing recovery is right around the corner. After a rise in existing and new home sales in February, and a increase in mortgage applications for actual home purchases, the sentiment is clearly improving.

This positions Pulte to be the leading survivor company amongst the big homebuilders in the U.S. Despite the fact that they are taking on Centex’s less healthy balance sheet, this still leaves Pulte with well over three billion dollars in cash.

“We’re not here to necessarily call a bottom of the industry. We do think we’re close to that, and we think this combination provides an accelerated return to profitability which frankly is very important as public companies to return to profitability for our shareholders.” Said Richard Dugas, Pulte’s CEO.

This entry was posted on Thursday, April 9th, 2009 at 5:28 am and is filed under North Carolina Real Estate, Real Estate Market Analysis, South Carolina Real Estate, Texas Real Estate, US Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.