Why Home Builders Can’t Meet Housing Demand

Home Builders

America’s home builders are having a difficult time meeting housing demand, or so they say. While access to credit is cited as a factor that is holding back builders, that’s only a partial cause of builders’ reluctance to put their money where their optimism index mouth is. As NAHB chief economist, Robert Dietz, explains it builders are finding it more … Read More

Lennar Homes – Sales Of New Homes In Houston Drop 10% With Higher Prices

New Home Sales

Lennar Homes reported fiscal third quarter earnings, and the national home builder saw decent growth across U.S. markets with the exception of Houston. Sales of new homes were up 7 percent for Lennar compared to Q3 of last year, but deliveries in Houston dropped 10 percent. Lennar reported new orders rose 8 percent in the 3rd quarter, but orders of … Read More

Taylor Morrison Sees Sluggish Home Sales In Q4 2015

Taylor Morrison Home Corp reported fourth quarter earnings today, and the numbers were tepid at best. The Arizona-based home builder reported home closing revenue that was 3 percent lower YoY. Profit and revenue were essentially supported by higher average sales prices and a much larger community count after Taylor Morrison’s absorption of Darling. Taylor Morrison’s average closed home price for … Read More

Housing Starts & Permits Rise, But Actual Buyer Traffic Stagnates

The Census Bureau released starts and permits data for September. As one might expect the numbers showed some marginal gains compared to last year. Starts for single- family homes were up 12 percent YoY seasonally adjusted while the unadjusted data showed an 11 percent increase year-over-year. The more forward-looking permits data was more tepid, with September permits for single-family homes … Read More

Oil Takes Out $41, Home Builders Walking Into A Trap Of Their Own Making

I was out home shopping with a client this past week, and something that was readily apparent is the dramatic shift in the new home market here in Katy, West Houston during the past year. As I have written in previous posts, home builders have been suffering from a serious bout of irrational exuberance. I’m of course referring to the … Read More

Toll Brothers FY 2015 Results Indicate Declining Sales Per Community

Toll Brothers reported FY 2015 second quarter earnings this morning, and it looks like the California-based luxury home builder is marching into the teeth of a slowdown. For FY 2015 Toll reported they were selling homes in 269 communities, 6.7 percent more than the 252 communities they had in the second quarter of last year. For that increased community count … Read More

US Home Builders Get Clipped By Gravitational Forces Of Truth

It was a rough day for new home builders this week, as the gravitational forces of truth once again rained on their hopeful optimism. KB started the party with news that they were cutting guidance and pulling out of some Houston land deals. Lennar Homes followed suit by announcing they were also experiencing shrinking margins due to the collapse of … Read More

Home Builders’ Earnings Could Get Whacked With Collapsing Oil Market

With oil briefly sporting a $45 handle today, falling energy prices are likely to impact home builder’s earnings as pricing leverage and demand begin to fade in what have arguably been the hottest real estate markets in the country during the last two years. As this Marketwatch piece points out, Texas had the largest share of home building permits by … Read More