Uk Housebuilder Bovis Cautious On Outlook, Shares Down

[Fool's Gold]

Report from Reuters here :

http://investing.reuters.co.uk/news/articl...NG-UPDATE-1.XML

The shares certainly have taken a hit, along with many others in the sector.

[Little Professor]

"Bovis cautious on outlook"? They are getting pwned, dude!

Shares are down 8.2% already today. It's carnage!

Look here for a less restrained view of the situation:

http://business.timesonline.co.uk/tol/busi...icle2046827.ece

Bovis, the FTSE 250 builder, brought fresh misery to the housing market today as it reported that customer orders for its new-build homes have all but dried up and average sales prices have stagnated.

The builder, led by chief executive Malcolm Harris, said just 2,282 properties had been reserved during the six months to the end of June - a meager nine houses more than at the same point last year.

Average selling prices for a Bovis home rose by less than inflation to £189,000, only £300 higher than the £188,700 price at the halfway stage last year, the firm said.

"These figures reflect a recent slowdown in both visitor rates and in reservation rates," Bovis said.

Bovis's property market dampener followers a string of recent surveys, including from Halifax and Nationwide, highlighting that prices have come off the boil over the past three months.

Five successive interest rate rises since August have hit household budgets and made both buyers and sellers more wary.

Shares dropped 30.5p to 890p in the opening minutes of trading, a fall of 3.3 per cent. [Now down 8%!!!] And rival housebuilders all fell in sympathy. [Aww, how nice of them!]

[Little Professor]