National home builders cut and run from real estate bubble

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http://www.usnews.com/usnews/biztech/buzz/archive/buzz060509.htm

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...the housing bubble isn't bursting just yet, it's leaking a good amount of air. Just take a look at what the nation's home builders–among the biggest cheerleaders for the housing market–are saying.

the housing bubble isn't bursting just yet, it's leaking a good amount of air. Just take a look at what the nation's home builders–among the biggest cheerleaders for the housing market–are saying.
Translation: The company is having difficulty generating new business, and like those in other struggling industries, such as automakers, the home builders will need to start cutting prices to move their products.

WCI is not alone in its struggles.

Robert Toll, chairman and chief executive of Toll Brothers, said: "We are entering our ninth month of slower sales in most of our markets." He added that speculators are no longer driving this market. "Instead, they're putting the homes they've recently acquired back on the market or are canceling contracts in midconstruction." Meanwhile, "additional supply is also coming from speculative homes started by other builders," he added.
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