US Homebulders not doing very well due to cancellations and increased use of incentives.

D.R. Horton net sales fall short
Texas-based homebuilder cites challenging selling conditions; shares down 1.7% during morning NYSE trade.

"CHICAGO (Reuters) -- Homebuilder D.R. Horton Inc. reported lower quarterly sales orders Tuesday that came in well below market expectations, citing challenging selling conditions."

"Though the cancellation rate fell to 33 percent in the first quarter from 40 percent in the fourth quarter of fiscal 2006, D.R. Horton said in a statement that "we continue to experience higher than normal cancellation rates and an increased use of sales incentives in many of our markets."" Full Article