US homebuilder profit plummets

D.R. Horton “Americas home-builder” saw a bit of a drop in their Q2 profits.. Quite a bit of a drop actually: an 85% drop in profit from last year. That works out to be 16 cents a share, short of analyst expectations of 27 cents a share.

“Market conditions in the homebuilding industry continue to be challenging in most of our markets as inventory levels of both new and existing homes remain high, and further increases in the use of sales incentives continue to put pressure on profit margins,” said D.R. Horton Chairman Donald R. Horton.

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the pope

Hat tip to BCBuds for the link. How long can supply grow, demand drop and prices rise here? Thats the big question for Vancouver.