D.R. Horton , the largest U.S. homebuilder, expects homebuilders' pricing power to return by January 2008, after the hard-hit industry works its way through its inventory of unsold homes, the company's chief executive said on Wednesday.
"I believe we are having an orderly and reasonably profitable liquidation of excess inventory in the marketplace," chief executive Don Tomnitz told the Citigroup Industrial Manufacturing Conference. "I don't think '08 is going to be a great year, but it's going to be much better than '07." He also said, "'07 is going to suck, all 12 months of it."
D.R. Horton said it may have to make further write-offs to reflect unsold homes or lower land values.
"We may have more impairments coming," Tomnitz said. "We'll know that on a quarter-by-quarter basis."