Unsure Of The Housing Market's Future, Homebuyers Are Canceling Deals
In the face of an uncertain future for the housing market, more and more potential homebuyers are backing out of deals and the nation’s largest builder, D.R. Horton, is no exception. Nearly 25% of its contracts fell through during April, May, and June, the company reports. Now, builders are slowing down their production process and fewer houses are being built to balance consumer demand.
D.R. Horton executives aren’t letting the cancelations dampen their spirits, as they say that even though the demand is slowing, it hasn’t stopped and builders are able to adjust and slow production down given this current shift.
Although homebuilders are still a ways away from pushing the panic button, the latest quarterly earnings from D.R. Horton shows how big homebuilders are being forced to adjust to a shifting market by pulling back their production volumes, moderating their price increases, and offering more incentives to buyers.