Some housing bubble news from Wall Street. "Dallas-based homebuilder Centex Corp. reported Tuesday that its profit for the latest quarter plunged 60 percent with the slowing of the U.S. housing market. Centex said it was forced to write off more than $130 million in costs in the quarter ended Sept. 30 related to canceled land purchases and revaluations."

"'We have been aggressively responding to deteriorating market conditions by reducing our controlled lots and aligning our workforce to the new market realities,' Centex CEO Tim Eller said."

"Concerns about a housing price bubble in many markets, higher interest rates and a slowdown in economic growth have put potential homebuyers on the sidelines. New home orders were down in every section of the country for a total of 29 percent, Centex said. Sales orders in the Southwest were off 14 percent from a year earlier."

"Eller said inventories of existing homes for sale have doubled or tripled in many markets and in some areas are still rising. 'Buyers are either waiting on the sidelines for conditions to improve or canceling their purchase all together, believing they will be unable to sell their existing home for their expected price,' the home-builder CEO said."

"He added that markets that got overheated such as Phoenix and areas of California are seeing sales listings grow significantly more."

The Times Community from Virginia. "Centex Homes Division president Robert K. Davis notified Mayor George Fitch that the Dallas-based company 'will not move forward and complete the purchase' of about 385 acres for a gated subdivision on U.S. 29 at the town's southwestern edge."

"Centex wanted to build 298 single-family homes, which would have started at $900,000 apiece, according to the company. Supervisor Chester Stribling (Lee District) didn't expect the company to scuttle the project. 'I thought they were committed to it,' he said. But he added, 'It was high-end expensive housing and the market's cold.'"

"Brookfield Homes Corp. reported third-quarter net earnings of $27.6 million, down 27% from the year-ago period. The Fairfax, Va.-based home builder posted revenue of $176.2 million vs. $267.7 million. In addition, Brookfield reduced the range of its 2006 per-share earnings outlook due to the impact the continued market uncertainty may have on its estimated home closings and bulk land sales."

"'The long anticipated slowdown in housing markets in the U.S. remains a challenge, particularly in our San Diego and Washington, D.C. markets,' said CEO Ian Cockwell."

"Denver-based M.D.C. Holdings Inc., the eighth- largest U.S. home builder by market value, said on Tuesday its third-quarter earnings fell 60 percent as potential buyers canceled orders. Potential customers have backed out of purchases over concerns the houses may drop in value and because they are having trouble selling their existing residences."

"M.D.C. also incurred a $20 million expense to write down inventory and recorded project write-off costs of $9.5 million. CFO Paris G. Reece III said in a statement the inventory writedown related mainly to five projects in California where demand was weak and required 'significantly increased sales incentive requirements.'"

"M.D.C. said it reduced its land holdings and options on land in the quarter to increase cash flow and preserve capital amid the weakness in the housing market. It owned or had options on 31,565 lots in the third quarter, down 28.2 percent from 43,987 lots in the same period last year."

"Incentives as a percentage of average selling price doubled from 3 percent to 6 percent in the last quarter, said Reece. Demand for new homes, particularly in Colorado, has been weak, Reece said."

"'It's a bit of a mystery,' he said. 'We have job growth in a positive way for the last couple of years. It's a vibrant community. But we've seen listings rise, and foreclosures on a per-capita basis are the highest in the country.'"

"The company decreased its land investment by $100 million during the third quarter and reduced the number of lots it controls by 25 percent. But as more homebuilders struggle, land may become available at sharply reduced prices."