Reply #28: This on the heels of yesterday's warnings from KB and Toll Brothers

[54anickel]

Things are starting to look a little shaky in the housing business - but heck nothing to worry about, those consumers are out in full force buying up all kinds of crap. Has money started falling from the skies or what?

You don't suppose a lot of those consumer purchases were made on Christmas Gift Cards, do ya? Gifts, bonuses, etc? I got a $200.00 gift card from a store back in December (bought a new mattress set) that's good for 90 days. Sure, I'd rather have the $200 taken off the price I paid for the mattress, but that's not how they were playing the game.

http://www.signonsandiego.com/news/business/20060214-1355-kbhome.html

LOS ANGELES – KB Home said the number of canceled home orders rose in the first two months of the year while net orders for new homes fell – a trend that could force the company to adjust revenue projections if it continues.

KB's warning, made in a filing with the Securities and Exchange Commission on Friday, comes on the heels of Horsham, Pa.-based homebuilder Toll Brothers Inc.'s announcement that new orders for its houses fell by 21 percent in the first quarter and home deliveries this year would be weaker than expected.

KB Home started fiscal year 2006 with a seven-month backlog of new home orders with a projected revenue value of $6.76 billion, the company said in the filing.

“Based on our backlog, we expect revenue growth for the first half of fiscal year 2006 to be consistent with the growth rates we have experienced over the last several years,” the company said.

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