DHI · Earnings call · 2026Q3T · Full report
Market Demand Trends
HORTON D R INC /DE/ · 2026-10-29 · Importance 55 · Surprise 32
New-home demand weakened as mortgage rates rose and cautious consumer sentiment constrained buyers, with net sales orders down 7% year over year and order value down 9%. Management said demand weakened further as the quarter progressed; traffic and sales activity in October were below normal seasonal levels, although buyers continued to visit sales offices. The company expects elevated rates and below-normal absorption assumptions to pressure demand, while its fiscal 2027 deliveries outlook reflects a wider range of possible spring market outcomes. Management said smaller and secondary markets held up better than larger markets, where competition and new-home and resale inventory were greater.
Key facts
- D.R. Horton said demand weakened as the fourth quarter progressed and October traffic and sales activity were similar to September and below normal seasonality.
- D.R. Horton's net sales orders were 7% lower than the prior-year quarter in fiscal 2026's fourth quarter.
- D.R. Horton's fourth-quarter net sales orders decreased 7% year over year to 18,600 homes, and order value declined 9% to $6.6 billion.
- D.R. Horton's fourth-quarter cancellation rate was 23%, compared with 20% sequentially and year over year.