MDC Holdings plans to offer more incentives in an effort to increase sales in a weakening residential real-estate market.
The Denver-based homebuilder said in a Wednesday filing with the Securities and Exchange Commission that uncertainty over interest rates, increases in the cost of living and fluctuations in consumer confidence are contributing to declining sales of new homes for the past 10 months.
MDC officials declined to comment on the report, saying the information contained in the filing speaks for itself. The company also didn’t disclose any details on the incentives.
A competitive market caused orders for new MDC homes in Colorado to decrease from 664 last year to 451 this year. Those decreases were partially offset by a 37 percent increase in MDC orders in Utah.
The company also said an increase in the number of homes for sale caused more order cancellations from prospective buyers unable to sell their existing homes. A record 29,045 existing homes were on the metro-area market in April.
MDC reported net income for the first quarter of $95.4 million, or $2.08 per share, compared with net income of $84.6 million, or $1.86 per share, for the same period in 2005. Total revenue for the first quarter reached $1.14 billion, up 22 percent from the same period in 2005.
The stock closed Wednesday at $58.01 on the New York Stock Exchange.
Staff writer Margaret Jackson can be reached at 303-820-1473 or mjackson@denverpost.com.
