Now is the time to buy a Toll McMansion

People don't want houses like the Hampton that Toll Brothers Inc. (NYSE:TOL) is building at its Chapel Hill at Sparta development in New Jersey.

This 4,780-square foot McMansion has four bedrooms, four bathrooms and three garages. The floor plan base price is $809,975, but given Toll's current state I bet that's negotiable.

The largest luxury home builder today reported quarterly results that were horrendous. Fiscal first quarter earnings plunged to $54.3 million, or 33 cents, a share, from $163.9 million, or 98 cents, a year earlier. Revenue fell 19 percent to $1.09 billion. Analysts were expecting profit of 29 cents on sales of $1.09 billion, according to Thomson Financial.

Toll understandably gave earnings guidance that was wide enough to drive a tractor-trailer through. Profit this fiscal year is expected at $1.46 per share to $1.85 per share with revenue between $4.20 billion and $4.96 billion. Analysts had expected profit of $1.46 on sales of $4.36 billon.

"There are too many soft markets at this stage of the selling season to call a general upturn in the new home market," said Chief Executive Robert Toll.

That's putting it diplomatically.

With a few exceptions, the real estate market is coming back to earth. The crazy good times in the market are over. Now, people are hoping that the bad times don't get worse.

Also check out some other earnings reports that we're following, and let us know what you're expecting.