Home builders are also seeing problems from the mortgage market crisis. With home values falling, and with potential buyers unable to get qualified for a home loan, many are starting to see ripples across the real estate market as well.

One sector that is seeing problems is the luxury home business. MarketWatch reports on the troubled afflicting Toll Brothers right now:

Toll Brothers’ second-quarter revenue slipped 30% from a year earlier
to $818.8 million. After cancellations, net contracts dropped 44% to
929 homes. The average home price of net contracts in the second
quarter was $534,000, compared with $710,000 in the year-ago period. …

Toll, the CEO, once again called on the government to grant tax breaks
for home buyers, which he says would get them off the sidelines and
"stop the downward spiral of home prices." Until home prices stabilize,
"trying to address mortgage issues may be difficult at best," he said.

More proof that mortgage market problems are starting to move up the economic food chain and affect the wealthy.