Prices too High, Buyers on the Bench
"Although quarterly profits rose 3 percent from the year-earlier period, Toll Bros. Inc. on Tuesday trimmed its 2006 outlook due to slowing demand for new houses and rising labor and material costs."
''We believe many customers currently feel a lack of urgency to purchase due to their uncertainty over the direction of home prices," says Chief Executive Robert Toll, in a news release."
"Earlier this month when the company released preliminary quarterly results, it knocked down its 2006 home-delivery estimate for a third time, to between 9,000 and 9,700 homes.
Toll says fear over the housing market "has contributed to keeping many potential buyers on the sidelines."'
"The company reiterated its view that speculators are throwing in the towel and the housing market will rebound once it works its way through the excess inventory."