Once coveted parcels of land purchased for new homes and subdivisions are being sold off at record pace. Home Builders under contract to purchase land are passing on deals already made and are often forfeiting the huge deposits in the millions of dollars on many of them.

The Home Builders are not only are walking away from options to purchase the lots but are also seeking delays in closing the sales on the land already underway. Publicly traded Home Builders are writing off huge options that were purchased for future development.

Softening demand for some residential land is not surprising given what's happening in the housing market slowdown. Today, home builders are focused on slashing their inventories of homes and land, certainly not purchasing more land.

In some areas of the country land is very scarce and the land holders there are hanging on awaiting stabilization of the housing markets to catch the next upward tide.