No link is available for the Dow Jones Newswire report. "KB Homes has noticed a surge in cancellations and a drop-off in orders in the first two months of fiscal 2006, and if this trend continues, the company said it likely will have to ratchet down its revenue guidance for the year, according to a 10-K filing."

"The comments appear to be a sign that the sharp drop-off in orders recently reported by luxury builder Toll Brothers Inc. may not be limited to the luxury segment as many market experts presumed."

"'There are signs that consumer demand in the United States for residential housing at current prices is softening,' KB Home said in its 10K, which was filed with the Securities and Exchange Commission on Friday."

"The Los Angeles builder noted that the U.S. Census Bureau reported that single-family housing starts in December fell 12% from November, and about 8% from December 2004. Also, the bureau reported that the median sales price for new homes declined approximately 3% in December from a year earlier. 'Our results to date in fiscal year 2006 reflect these broader market trends,' the company said. 'In the first two months of the (fiscal) year, we have experienced an increase in home order cancellations and a decline in net orders for new homes when compared to the same period last year.'"

"In December, KB Home's board authorized the repurchase of 10 million shares. Since then, the company has repurchased 2 million shares in addition to the 2 million shares it bought back during its fiscal fourth quarter under the previous authorization program."

"UBS analyst Margaret Whelan expects the company's orders to be down 10% in its fiscal first quarter, which ends Feb. 28. She said much will depend on how the company's key spring selling season unfolds. 'Demand is definitely down, there's no doubt about it,' she said. 'Everything depends on what happens in the spring,' she said."

Meanwhile, incentives keep coming. "Kara Homes has announced a quick delivery home 'spec'-tacular. They are offering homes in all designs that are ready to go at discounts ranging from $20,000 to $246,000 throughout its New Jersey portfolio. Currently, Kara has quick delivery homes available to the general market and in our active adult communities from Mount Arlington to Mays Landing."

"Residential builders, hoping to jump-start sluggish sales in San Joaquin County, are dangling long-unheard-of incentives in front of real estate brokers and new home buyers. 'We've never offered anything like this before,' said Kimball Hill Homes sales consultant Niki Ryan."

"Kimball Hill is presenting buyers with Best Buy and Pottery Barn gift certificates totaling $10,000. 'That's insane incentives,' said Henry Doughton. 'That's a lot of comforters and sheets,' he said."

"Starting in early January, new-home shoppers might have noticed some unusually enticing ads. Although many of those offers expired before today, when the Builders Association of the Twin Cities kicks off its Parade of Homes Spring Preview, some builders are promoting special prices or terms for the event."

"Wayne Soojian, Twin Cities division president for Ryland Homes, said some builders were seeing an increased number of unsold completed homes, ones built on speculation. 'You're seeing some of the bigger-dollar promotions from people trying to move that inventory."

"Bonita Springs-based luxury builder WCI Communities had a good year in 2005 but customer traffic in its sales centers was down sharply in January, the company reported Friday. In January, traffic was down 49 percent from a year ago and down 44 percent for the first eight days of February, said Jerry Starkey, president and CEO."

"Mark Carruthers of Garnerville, N.Y., owns a condo near Edison Mall in Fort Myers and is currently negotiating to buy a second condo in the city. But he's not willing to pay top dollar, said Carruthers. The market, he said, has gone directly 'from a boom period into a bust period' in the past few months."

"Judy Ramage in Cape Coral said she has seen things slow down too. In January, she said, 'We've got about 580 active listings and we had 109 showings' compared to January 2005 when the agency had 75 listings and 245 showings."