REAL ESTATE

BARRATT PROFITS: Barratt American, the U.S. subsidiary of British home builder Barratt Developments PLC, said it had pretax profits of $36.6 million for its 1989 fiscal year ended June 30.

Those pretax profits were more than double last year’s $17.3 million. The strong showing in the 1989 fiscal year reflected the booming sales of new homes last year. Those sales have now cooled considerably.

Barratt started in Southern California as a builder of inexpensive condominiums but has moved into the market for large, expensive houses as that business prospered in recent years.

The British parent, one of that country’s largest builders, reported net earnings of $120.1 million on sales of $909.1 million for the fiscal year, up from $104.6 million on sales of $900.2 million last year.

But the market for expensive homes may not hold up much longer, according to another home builder.

J.M. Peters Co. Inc., Newport Beach, which specializes in building expensive homes, said recently in its regular quarterly report to the Securities and Exchange Commission that the so-called “move-up” market is running out of steam in Orange County.

The market for resale houses “has slowed and prices have flattened,” so it is harder for the company’s customers to get as much equity out of their old homes to buy Peters’ more expensive new ones, the company explained.

Next year, its sales won’t be nearly as strong, Peters said. The company will be stepping up its marketing to get more customers into its projects.