Zacks Analyst Interview Highlights: Toll Brothers and Standard Pacific.CHICAGO -- Zacks.com releases the latest Analyst Interview. Today's interview is with equity research analyst Mario Ricchio, who discusses Toll Brothers (NYSE NYSE See: New York Stock Exchange :TOL) and Standard Pacific (NYSE:SPF (1) (Stateful Packet Firewall) See stateful inspection. (2) (Sender Policy Framework) An e-mail authentication system that verifies that the message came from an authorized mail server. ). A synopsis A summary; a brief statement, less than the whole. A synopsis is a condensation of something—for example, a synopsis of a trial record. of today's Analyst Interview is presented below. The full article can be read at http://at.zacks.com/?id=2678. Are homebuilding companies beginning to proceed with caution with regard to the current housing market? Yes they are. After record housing starts in January, the homebuilding industry reported a third consecutive month of slower construction activity in April. The homebuilders are finally responding to rising inventory levels and moderating demand with less supply. In April, housing starts fell 7% on a sequential basis and 11% on a y-o-y basis. More importantly, the latest data on permits suggests the homebuilders remain cautious for the seasonally strong spring and summer selling season. Building permits, an indicator of future construction, fell 8% on a y-o-y basis to 1.98 million units. Supply has fallen almost 240,000 units from January's data, in which housing permits reflected an annual pace of 2.22 million units. Given continued high home inventory levels and moderating home demand, we believe permits are likely to fall for at least the next six months to bring supply back in balance with demand. Despite the decline in housing starts in March and April, the number of unsold homes at the end of March hit a record 3.19 million units. At the pace of current sales demand, it would take 5.5 months to eliminate the backlog of unsold homes--the longest period since 5.6 months in July of 1998. We expect the April figure to creep up Verb 1. creep up - advance stealthily or unnoticed; "Age creeps up on you" sneak up advance, march on, move on, progress, pass on, go on - move forward, also in the metaphorical sense; "Time marches on" to 5.7 months as demand weakens further. Slower demand is affecting both low-end and high-end builders. Just recently, Toll Brothers (NYSE:TOL) warned that signed contracts for its homes fell 29% during the second quarter and home deliveries would be 200 units lower than the street expected. Also, Standard Pacific (NYSE:SPF) lowered its full-year earnings guidance in July thanks in part to a 41% decline in net new home orders for the first two months of the second quarter. Orders fell on the back of an increased cancellation rate and continued demand weakness in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, and Northern California Northern California, sometimes referred to as NorCal, is the northern portion of the U.S. state of California. The region contains the San Francisco Bay Area, the state capital, Sacramento; as well as the substantial natural beauty of the redwood forests, the northern , Florida and Arizona. Read the full interview at http://at.zacks.com/?id=2647. 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