The large home builder sold 6,374 homes for $1.3 billion in this year's fourth quarter compared to 10,430 homes and $2.5 billion during the same quarter a year ago. The company's cancellation rate for the fourth quarter of fiscal 2007 remained high at 48 percent.
"Market conditions for new-home sales declined in our September quarter as inventory levels of both new and existing homes remained high while pricing remained very competitive," said Donald R. Horton, the company's chairman, in a press release posted on the company's Web site.
"We also experienced reduced mortgage availability due to tighter lending standards, and buyers continued to approach the home buying decision cautiously," he added. Net sales orders for fiscal 2007 slid 41 percent from 51,980 homes and $13.9 billion in fiscal 2006 to 33,687 homes and $8.2 billion this fiscal year.
Horton expects the housing environment to remain challenging and said the company will continue to focus on reducing inventory, generating cash flow, and reducing outstanding debt. He said the company significantly reduced its homes under construction during the fourth quarter, which contributed to achieving the builder's cash flow from operations goal of $1 billion for the fiscal year.
The company will report its full fourth-quarter results on Nov. 20.