April 20, 2007
FLASH: D.R. Horton, America's largest homebuilder, in complete and total crash mode. CEO looking for any buyer with a pulse. And you can quote him.
It's rare when I see things that make my jaw drop. Well, here's one from D.R. Horton.
This kind of attitude should have Fannie, Freddie, the Banks and mortgage CDO investors worldwide shaking in their boots.
The housing game is in its last innings, and desperation and fraud are spinning out of control as desperate builders, desperate lenders and desperate homedebtors do anything, and I mean anything, to survive.
Home builder D.R. Horton earnings plunge 85 pct
NEW YORK (Reuters) - D.R. Horton Inc. , the largest U.S. home builder, said on Thursday quarterly earnings fell 85 percent, in part due to charges related to the lower value of land.
The U.S. housing market has been in a severe downturn for the past year, with a mounting glut of homes on the market, increasingly resistant prospective buyers and tighter lending standards.
Builders have responded by slashing prices, throwing in freebies and cutting back on "spec homes" -- those built speculatively without a buyer.
"We face head winds, we believe, and strong head winds, we believe, during the course of the next six to 12 months from , illiquidity in the mortgage industry," Tomnitz said.
"As I've said to all our salespeople, if a buyer is warm and has a pulse, we want to put them on paper," he said.