Monday, February 25, 2008

D.R. Horton Reports First Quarter Loss

In D.R. Horton’s first fiscal quarter for the three months ending December 31, 2007, the company reported losses of 41 cents per share, or $128.8 million dollars. There were various inventory write-off and charges taken for abandoned land options.

Operations generated $588 million. However, new homes sales orders plunged nearly 52% from 8,771 to 4,245 homes. The cancellation rate buy buyers skyrocketed to 44%, showing weak consumer sentiment and continued bullishness in the housing market. It’s expected that the overall tough housing market and strict lending practices will continue to hurt home builders.

However, if you’re in the market for a home, and you have a good credit history and credit score, now might be the right time for you. Home builders are offering a lot of incentives and rebates, such as upgrades, appliances, move-in specials, deep discounts, and financing specials.

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