The following are headlines from yesterday.
- Homebuilders Try to Avoid Cancellations
- Toll CEO says Speculators Walking Away from Contracts
- Beazer Tried to Close Homes to Avoid Future Cancellations
- Pulte CEO says Scaling Back in Response to Tougher Market
- Home-Improvement 3Q Earnings Seen Down
Two days ago it was:
- S&P cuts Target Price on Hovanian
- Bad News From Some U.S. Homebuilders
- US Homebuilders Say Housing Slowdown Continues
The homebuilders are singing a much different tune over the last few days. Why? Many have released earnings this week and the costs of misleading investors are too high. So, CEOs are confessing their sins and are setting more realistic expectations.
I know what you are thinking. The news is so bad that we must be near a bottom. It is going to take some time, maybe years, to work-off the excessive inventory in the market. Bargains will only get better. Real Estate investors be patient.
by James Kelleher
U.S. Homebuilders Say Housing Slowdown Continues
CHICAGO (Reuters) – Three leading U.S. home builders warned on Tuesday that the slowdown in the country’s once-soaring real estate market continued in the latest quarter as deteriorating consumer confidence and falling prices cast a growing pall over the sector.
Luxury homebuilder Toll Brothers Inc. said it expects to report a 10 percent drop in quarterly home-building revenue, and warned of continuing softness in formerly booming markets such as Northern California and parts of Florida.
The company also said it expects to take fourth-quarter write-downs of $50 million to $100 million on both the land it owns and has options to buy, up from a prior forecast of $4 million. The charges will reduce net earnings by 18 cents to 36 cents per share.