PHILADELPHIA - More than a year ago, the chief executive of luxury-home builder Toll Bros. Inc. thought the housing slump could be touching close to bottom.

These days, the normally chipper Robert Toll bears much grimmer news: He still doesn't see "much light at the end of the tunnel" in the housing malaise.

On Wednesday, Toll Bros. said home-building revenue fell by 22 percent in the first quarter, its seventh consecutive quarterly decline. Toll said that despite historically low mortgage rates and falling home prices, a slowing economy could be spooking buyers.

"Buyers seem to be hiding," Toll said. "The market's problem is a lack of confidence, not just regarding the direction of home prices, but ... the overall economy."

Home-building revenue fell to $842.7 million in the period spanning November to the end of January, compared with $1.1 billion a year earlier, according to the preliminary report.

Revenue in Florida, the Carolinas, Texas and, in 2008, Georgia, saw the biggest decline at 44 percent to $138.9 million. The Horsham-based company began operating in Georgia only this year.

The mid-Atlantic and West states were tied at 24 percent declines - to $250 million and $227 million, respectively - and the North saw an increase of 7.5 percent to $227 million.

Net signed contracts, a sign of future activity, were cut in half to $375.3 million.

In the quarter, 257 contracts valued at $198 million were canceled.

The cancellation rate came to 28.4 percent in the quarter, compared with 29.8 percent last year during the same period.

In contracts, the Western states of California, Nevada, Arizona and Colorado plunged by 76 percent to $30.7 million. The North followed with 57 percent, the mid-Atlantic at 37 percent and the South bled the least, down 26 percent.

In contracts signed before cancellations, the average price per home fell 13 percent to $634,000.

After taking into account canceled contracts, the average price fell to $580,000 as buyers backed out of higher-priced homes. Toll said part of the price decline resulted from sales of more multifamily units such as condominiums, which sell for less than single family homes.

Anna Torma, an analyst at Soleil, said in a research note that Toll needs to "aggressively" cut prices of backlog inventory to sell "spec" homes, those without a predetermined buyer.

Toll said he's raising deposit requirements to deter cancellations and avoid having specs, which increases builder risk.

Shares of Toll Bros. fell by 74 cents to $21.13 on Wednesday.