Fort Worth, TX, October 10, 2006--D.R. Horton Inc. said Tuesday that new home orders for the fourth quarter ended Sept. 30 fell 25 percent to 10,430 from 13,950 homes in the year-ago period.
The company, which is the nation's largest builder based on 2005 orders, also said current sales trends in industry continue to be "challenging," and noted higher than normal cancellation rates and greater use of incentives to drive sales.
Fiscal 2006 orders declined 2 percent to 51,980 homes from 53,232 homes in fiscal 2005.
The cancellation rate, or homes cancelled divided by gross homes sold, rose to 40 percent for the fourth quarter from 29 percent in the third quarter
