The difficult conditions that plagued the home-building industry in the first quarter of 2007 worsened in the second quarter, with increased competitive pricing pressures, elevated levels of new and resale home inventory, and weak consumer sentiment for housing affecting the entire industry,” said Chief Executive Richard Dugas in a statement.
Recent jitters over fallout in subprime mortgages have only worsened the bleak outlook for the U.S. residential housing market.
Home builders have been taking write-offs to reflect land and home prices that have lost value in the face of the housing downturn, but Wall Street analysts noted the magnitude of Pulte’s expected charge.
“Pulte’s impairment charge is the largest taken in a single quarter by a public home builder in the current cycle,” wrote Wachovia analyst Carl Reichardt in a report to clients.
ESPECIALLY "weak consumer sentiment" for Pulte's shoddy houses, Dugas.