"The Ft. Worth, Texas-based company said net sales orders for its fiscal third quarter ended June 30 dropped to 8,559 homes valued at $2 billion, compared with 14,316 homes or $3.8 billion in the year-ago period."
"'Market conditions for new home sales declined in our June quarter as inventory levels of both new and existing homes remained high, and we expect the housing environment to remain challenging,' said D.R. Horton Chairman Donald Horton in a statement."
Yikes! DR Horton looks to be following in the steps of KB Homes and Lennar, although D.R. Horton has yet to post a loss. That should be coming later this month:
Yikes! DR Horton looks to be following in the steps of KB Homes and Lennar, although D.R. Horton has yet to post a loss. That should be coming later this month:
"Home builders have been taking land-related impairment charges during the housing slump, which are further hitting profit margins."
"Morningstar Inc. analyst Eric Landry in a research note said news that impairments would negate any profit 'isn't surprising, as Horton was among the most aggressive land buyers throughout the bubble years and is probably sitting on material amounts of land that doesn't pencil in today's lower-priced environment.'"
Given this information, I think D.R. Horton could end up in worse condition than KB and Lennar. Did you follow my advice and sell in June? If not, I'd say you still have a chance - the bottom hasn't dropped out yet.
Given this information, I think D.R. Horton could end up in worse condition than KB and Lennar. Did you follow my advice and sell in June? If not, I'd say you still have a chance - the bottom hasn't dropped out yet.
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