Fourth Quarter sales drop again for Toll Brothers.. America’s largest single home builder. Revenue fell 36 percent and the cancellation rate rose to the highest ever as demand faltered in the weak housing market.
Toll Brothers will have a cost of as much as $450 million for land writedowns and said demand worsened in October as excess supply held back customers.
Sales of new homes in the U.S. declined 23 percent in September from a year ago as tightened lending standards and falling prices deterred buyers.
Robert Toll said the Las Vegas, Nevada market was among the company’s worst but the company’s urban condominium business in New York and New Jersey were doing well.
However Toll Brothers is not alone as Florida homebuilder WCI Communities Inc., announced a 61% drop in revenues from a year ago.
As the Housing sector gets hit so do all related industries. Investment in current homes is held back due to dropped values in the market making refinancing and second mortgages difficult to obtain for remodeling. Current home owners are reluctant to invest more into a home that they may find hard to sell.