Luxury home builder Toll Brothers’ net falls 19 percent. They decided not to execute some options they had on land for new developments, therefore losing many millions of dollars they put down in option money.
DR Horton recently reported ‘losing’ a lot of option money as well.
Arizona and the United States in general has an oversupply of homes for sale. A medium term solution is for builders to build fewer homes until the market tightens up.