Trouble on the Home Front

Updated from 10:45 a.m. EST

Homebuilders Centex (CTX Quote) and Ryland (RYL Quote) both reported strong quarterly earnings, but their new-order numbers, which will drive future growth, look dismal.

Meanwhile, in yet another signal of a housing market slowdown, data released Wednesday showed that sales of existing homes fell even further than expected in December.

Late Tuesday, Calabasas, Calif.-based Ryland said its net income rose 49% to $162 million, or $3.32 per share, compared with $108.7 million, or $2.17 per share, a year earlier. The results handily beat the consensus $3.12 estimate on First Call. ...