THE HITS KEEP ON COMING

D.R. Horton CEO says 2007 will be worse than 2006


By John SpenceLast Update: 2:00 PM ET Sep 12, 2006
BOSTON (MarketWatch) — DHI : D.R. Horton, Inc.Last: 23.80+1.45+6.49%1:46pm 09/12/2006
Don Tomnitz, chief executive of D.R. Horton Inc., Tuesday said the company is preparing itself for a tougher housing market in 2007 compared to 2006, with prices finally stabilizing in 2008. “We have never seen housing prices and demand slow as quickly as they have during this downcycle,” said the CEO of the nation’s largest home builder when measured by 2005 deliveries. “Demand has evaporated to the extent of about 20% to 30% for the industry, and in a tighter timeframe than we’ve seen before.” The use of incentives by builders to move homes in a slower sales environment will continue for the next three to four quarters, Tomnitz estimated at the Credit Suisse Homebuilders Symposium.