Housing: It’s Different This Time
Toll Brothers F4Q06 (Qtr End 10/31/06) Earnings Call Transcript - SeekingAlpha
As we previously announced, this quarter’s results were negatively impacted by a higher than normal 585 cancellations. With these cancellations creating unintended specs, we could face increasing margin pressure as we seek to move these homes. Right now it’s a great time to buy a new luxury home. Builders are motivated to sell their specs and the fundamentals that typically lead our industry out of the slowdown are already in place. Interest rates are near historic lows, unemployment is near an all-time low and the stock market is setting records.
The thing is, interest rates and unemployment were near all-time lows when the housing downturn started. What makes them think that those factors will help the market improve now?
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