Highlights: • Write-downs of inventory to fair value have cost the top 15 public homebuilders more than $16.5 billion in asset impairment charges since the beginning of 2006.• Homebuilders continue to downsize their operations to meet weakened demand. • Unwinding peak inventory and real estate investments are taking longer than expected to convert to cash. • In our view, light at the end of the tunnel seems further away toward reaching stable pricing in the housing market - possibly in late 2008. • Impairments may have peaked in the third quarter of 2007, but we believe more write-downs could come from owned land, land options and investments in joint ventures.
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