The largest homebuilder in the US had a conference today. "D.R. Horton Inc., the nation's top residential builder by units, said Thursday its third-quarter profit dropped 21 percent due to a tighter housing market. 'Selling conditions are very difficult in the homebuilding industry,' Chairman Donald R. Horton said. 'The current home sales environment is characterized by an increase in both existing and new homes available for sale, higher than normal cancellation rates and an increase in the use of sales incentives in many of our markets.'"

"Chief Executive Don Tomnitz in a conference call Thursday said the company is operating in a more difficult and challenging housing environment. Speculators have left many markets which has led to higher inventories, while builders are offering more incentives to buyers as cancellation rates rise, he noted."

"Also Thursday, M.D.C. Holdings said second-quarter profit slumped 25%. 'During the first six months of 2006, the generally robust demand characteristics of the last several years have given way to an increasingly competitive environment in many of the country's key markets,' CEO Larry A. Mizel."

"The company said it is scaling back its investment in land as profit margins shrink, and it noted increased competition and inventory pressures in its California market. The company also took a $7.9 million write-off for project costs, including option deposits and other costs related to lots it has decided not to acquire. The company said orders for new homes dropped 43% from last year to 2,738 units."

"The cancellation rate surged to 43% from 19% the prior year, reflecting jitters over the housing slowdown. 'The cancellation rate is the highest we have seen from the publicly traded builders due to M.D.C.'s high concentration in weakening markets,' said Banc of America Securities analyst Daniel Oppenheim."

"The company focuses on first-time and move-up buyers with significant operations in Arizona, California and Nevada."

"Like other builders, NVR said Thursday orders for new homes fell in the quarter as activity continues to slow in the U.S. housing market. The company said orders fell 13%. Orders in its Washington, D.C. and Baltimore markets slipped 27% and 24%, respectively. Cancellations also rose as more buyers backed out of contracts as mortgage rates ticked steadily higher."

"'Housing demand reached a state of frenzy last year, driven by investors,' said Rick Murray, a housing analyst at Raymond James & Associates. 'With a flick of a switch, the investors no longer have an appetite for real estate.'"