Fort Worth, Texas-based home builder D.R. Horton released a preliminary fourth-quarter report showing net sales orders dropped 48 percent to 6,374 homes, a total value of $1.3 billion, from 10,430 homes, a value of $2.5 billion, in the previous year.
The company’s fourth-quarter cancellation rate rose to 48 percent, compared with a rate of 40 percent in the year-ago period.
For the year, the company saw net sales orders drop 35.2 percent to 33,687 homes, or $8.2 billion, from 51,980 homes, or $13.9 billion.
"Inventory levels of both new and existing homes remained high, while pricing remained very competitive,” said Donald Horton, chairman of the company’s board of directors. “We also experienced reduced mortgage availability due to tighter lending standards, and buyers continued to approach the home buying decision cautiously. We expect the housing environment to remain challenging.”
The company will release its fourth-quarter results on Nov. 20. D.R. Horton builds homes in 27 states.