The Philadelphia Inquirer has this report on Toll Brothers. "The chief executive officer of Toll Bros. Inc. acknowledged yesterday what many in the housing industry have long feared. Speculators helped fuel the housing boom, and now they're trying to unload homes in a weakening market."

"'In 2005, demand for new homes in many markets was propelled to unsustainable levels by speculative buying,' Bob Toll said in a quarterly earnings conference call. 'We are now on the other side of that slope.' Some regions have experienced more speculation than others, Toll said, mentioning Washington, Las Vegas and Orlando, Fla. He characterized the Philadelphia region as holding steady."

"It is troubling news for a housing market that has been hurt by rising interest rates and a growing inventory of unsold homes and condominiums. Data from the NAR show that the number of unsold existing homes last year rose 524,200, to 2.5 million, as more people tried to sell homes than there were buyers for."

"The number of existing unsold condos rose last year by 135,000 units, to 483,500. The numbers do not include new homes or condos." "(Economist) Mark Zandi said that the housing market peaked last summer and that a correction could last three years. 'It does not feel that this market is crashing; it will correct,' Zandi said, noting that he expected home prices to decline in many places. In the most overpriced markets, declines will range from 10 percent to 15 percent, he predicted."

"Toll Bros. had reported earlier this month that contracts for homes it would build later this year fell sharply in the first quarter, reflecting the weaker market. Toll Bros., of Horsham, said yesterday that it believed its rate of cancellation, people backing out of signed contracts, had peaked in the first quarter."

"Toll Bros. said it had repurchased one million shares this month. As of Jan. 31, it had 167 million shares outstanding."

"William Mack, an equity analyst with Standard & Poor's, said maintaining past growth will be tough for home builders as the housing market continues to cool. Robert Toll told analysts ithat he expects business to stay in good shape even if home prices fall."

"'We have enough cushion between the price of the land and price of the home..to build lower-priced homes. But that's not our interest,' he said. 'Our interest is to adjust to higher-priced homes if we can.'"

"California showed the only decrease in performance, down 16 percent. But the picture is different with signed contracts, down 21 percent overall to $1.14 billion. All regions showed declines in signed contracts."