EX-99.1

FOR IMMEDIATE RELEASE
Contact :
Avatar Holdings Inc.
201 Alhambra Circle
Coral Gables, FL 33134
Juanita I. Kerrigan
(305) 442-7000

Coral Gables, FL – November 10, 2008 – Avatar Holdings Inc. (NASDAQ-AVTR) today reported a net loss of $21,710,000 ($2.54 per share, diluted) for the three months ended September 30, 2008, which includes an impairment charge on the Poinciana Parkway of $16,772,000 (after-tax basis), compared to net income of $3,084,000 ($0.35 per share, diluted) for the three months ended September 30, 2007.

Avatar reported a net loss of $28,806,000 ($3.37 per share, diluted) for the nine months ended September 30, 2008, which includes an impairment charge on the Poinciana Parkway of $16,772,000 (after-tax basis), compared to net income of $19,463,000 ($1.98 per share, diluted) for the same period in 2007.

During the three months ended September 30, 2008, Avatar closed on 66 homes, a 56% decrease from the 151 homes closed during the three months ended September 30, 2007. Dollar volume decreased by 55% to $18,190,000 compared to $40,252,000 for the three months ended September 30, 2007.

During the nine months ended September 30, 2008, Avatar closed on 201 homes, a 67% decrease from the 603 homes closed during the comparable period of 2007. Dollar volume decreased by 72% to $53,722,000, compared to $189,990,000 for the nine months ended September 30, 2007.

The number of housing contracts signed, net of cancellations, during the three months ended September 30, 2008 decreased by 65% to 27, compared to 77 for the three months ended September

30, 2007. Dollar volume of contracts signed declined by 60% compared to the three months ended September 30, 2007, to $6,899,000 compared to $17,064,000.

The number of housing contracts signed, net of cancellations, for the nine months ended September 30, 2008 declined by 58% to 146, compared to 346 for the nine months ended September 30, 2007. The dollar volume of contracts signed declined by 55% compared to the nine months ended September 30, 2007, to $37,152,000 compared to $82,084,000.

Our sales results continue to reflect the weak market for new single-family and multi-family residences in our markets. We do not anticipate a meaningful improvement in our markets in the near term. Our focus remains on managing Avatar and its assets for the long-term benefit of our shareholders. While the level and duration of the downturn cannot currently be predicted, we anticipate that these conditions will continue to have an adverse effect on our earnings for the balance of 2008 and into 2009.

Results for the nine months ended September 30, 2008 include pre-tax income of $9,234,000 on revenues of $9,729,000 from commercial, industrial and other land sales. For the nine months ended September 30, 2007, results included pre-tax income of $16,116,000 on revenues of $19,136,000 from commercial, industrial and other land sales.

At September 30, 2008, Avatar had cash and cash equivalents of $156,992,000 and total borrowings of $114,911,000, which included $114,800,000 of 4.50% Convertible Senior Notes due 2024. Avatar’s book value per share at September 30, 2008 was $58.66 In October 2008, Avatar purchased $35,920,000 principal amount of its 4.50% Notes, at a price of approximately $28,112,000, including accrued interest. At October 31, 2008, Avatar had total borrowings of $78,991,000, including $78,880,000 of 4.50% Notes and cash and cash equivalents of approximately $125,000,000.

Avatar Holdings Inc. is primarily engaged in real estate operations in Florida and Arizona. Its principal real estate operations are conducted at Poinciana, Solivita and Bellalago in central Florida near Orlando, TerraLargo in Lakeland, Florida, and at Rio Rico, south of Tucson, Arizona. Avatar’s common shares trade on The Nasdaq Stock Market LLC under the symbol AVTR.

Certain statements discussed herein constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks, uncertainties and other important factors include, among others: international, national and local market conditions and events such as the oversupply of existing homes caused by the number of investor and speculator resale homes and foreclosed homes for sale in our communities and in the geographic areas in which we develop and sell homes; tightening of the credit market and the reduced availability and more stringent financing requirements of residential mortgage financing in general and sub prime financing in particular; interest rates; mortgage rates; employment levels; income levels; consumer confidence; the successful implementation of Avatar’s business strategy; shifts in demographic trends affecting demand for active adult and primary housing; the level of immigration and in-migration into the areas in which we conduct real estate activities; the level of competition in geographic areas in which we do business; Avatar’s access to financing; changes in, or the failure or inability to comply with, government regulations; and other factors as are described in Avatar’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2007. Active adult homes are intended for occupancy by at least one person 55 years or older.

SELECTED FINANCIAL DATA FOR THE NINE MONTHS AND THREE MONTHS ENDED
SEPTEMBER 30, 2008 AND 2007
(Unaudited – Dollars in thousands except per share data)


	Nine Months						Three Months
	2008			2007			2008			2007
Revenues	$	77,821		$	231,155		$	22,359		$	57,455
Income (loss) before income taxes	$	(47,413	)	$	31,387		$	(35,933	)	$	6,554
Income Tax Benefit (Expense)	$	18,607		$	(11,924	)	$	14,223		$	(3,470	)
Net income (loss)	$	(28,806	)	$	19,463		$	(21,710	)	$	3,084 3,084
Basic EPS	$	(3.37	)	$	2.35		$	(2.54	)	$	0.37 0.37
Diluted EPS	$	(3.37	)	$	1.98		$	(2.54	)	$	0.35 0.35


Cash and cash equivalents	$	156,992	$	192,258
Total assets	$	657,722	$	706,541
Total stockholders’ equity	$	501,589	$	527,703
Book Value per share	$	58.66	$	61.90


Selected Balance Sheet Data

	September 30, 2008	December 31, 2007