Homebuilders offer bleak outlook, post losses

"Homebuilder D.R. Horton said Tuesday the industry could face tough times until 2010, and underscoring that point, Toll Bros. and Hovnanian Enterprises Inc. each reported a second-quarter loss.

'I believe the industry will continue to face rising pressures for certainly the next 12 to 18 months,' said Don Tomnitz, D.R. Horton's president and chief executive, adding that '2010 will be the earliest we get a more solid homebuilding environment.'

Homebuilders are struggling to sell their homes at a time when many buyers remain reluctant to enter the market because they expect home prices to keep falling. A glut of unsold homes has also hurt builders, forcing many to step up incentives and discounts, shrinking their profits."

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Homebuilders offer bleak outlook, post losses