More Evidence of the Housing Bottom from the Builders

Earlier this morning, we discussed some of the more hallucinogenic forecasts of the NAR (Home Prices Seen Rising in '07). As if on cue, a few more Home Builders show us what a bottom looks like (or not):

M/I Homes Inc. (MHO) Thursday said new contracts for the quarter ended Dec. 31 fell 61% from a year earlier, to 353 homes. The Columbus, Ohio-based home builder said its cancellation rate rose to 63% in the fourth quarter from 27% in the year-ago period, and from 42% in the third quarter. More buyers have been backing out as prices fall and as they experience more difficulty selling their existing homes.

Meritage Homes Corp. (MTH) said net orders fell 42%, cancellations hit a record high, and the company will take land-related writedowns in the fourth quarter as Meritage, like others in the sector, struggles with a crumbling housing market. The Scottsdale, Ariz., home builder reported net sales of 1,201 homes valued at $356 million, down from 2,072 orders valued at $723 million a year earlier. The weak sales were largely attributed to a surge in cancellations by jittery homebuyers worried about the volatile housing market. The company's cancellation rate soared to an all-time high of 48% of the company's gross orders in the quarter, up from 32% a year earlier.

Palm Harbor Homes Inc. (PHHM) warned it expects to post a loss in its fiscal third quarter ended Dec. 29. Chief Executive Larry Keener in a prepared statement said the manufactured-home industry "has continued to decline through the second half of calendar 2006, resulting in the weakest year for total factory-built housing shipments in history." The Dallas company said it projects unit shipments for factory-built housing for 2006 were 156,000 to 158,000 homes, about a 17% decline from the prior year.

I got your bottom right here.

Sources:

More Struggling Builders Warn Market Hasn't Turned Yet
John Spence
DOW JONES NEWSWIRES,January 11, 2007 12:50 p.m.
http://online.wsj.com/article/BT-CO-20070111-710984.html

Two more home builders say times are tough
John Spence
MarketWatch, 3:07 PM ET Jan 11, 2007
http://tinyurl.com/uhyaq