Lennar Homes Sees Declining Deliveries & New Orders In Houston During Q2

New Home Sales

Lennar Homes reported fiscal second quarter numbers this week. Although the company posted higher revenues and earnings for the quarter, Lennar’s Houston numbers were a noticeable soft spot. As one of the Houston area’s largest new home builders, Lennar is a good gauge for the overall strength of the Houston market. As one might expect, the local market for new … Read More

Lennar Homes Q1 2016 Earnings: Everything Is Fine Outside Of Houston

New Home Sales

Lennar Homes reported 2016 fiscal first quarter earnings today, and the results were pretty good overall. I should point out that Lennar, like many of the other major homebuilders with a national footprint, has been reaping the overflow of hot Chinese money making its way into the U.S. real estate market. The recent bid in West Coast homes has the … Read More

“Low” Inventory And Sell-Side Scatology In The Houston Real Estate Market

breakeven estimate

Browsing through some local stories today, I came across something that was too good to pass up. It’s an example of the vacuous analysis that gets paraded in local media outlets disguised as actual news. In this case a fellow colleague (an inner-loop real estate broker) actually made the assertion that months of inventory for Houston area homes priced $500,000 … Read More

Trendmaker Homes Parent (TRI Pointe) Reports Soft Orders, Higher Cancellation Rate

The most recent report on U.S. new home sales showed declining orders for homes, and it appears TRI Pointe Group (parent company of local builder Trendmaker Homes) confirms the softness in the housing sector. Contrary to Bloomberg’s suggestion that housing in an uptrend, I think we are seeing a real estate market that is topping out due to exhaustion from … Read More

KB Home Q3 Earnings Confirms Shrinking Margins Problem For Homebuilders

KB Home reported third quarter earnings, and the theme of compressing margins was apparent. KB reported revenues that were 43 percent higher and a 25 percent rise in deliveries for the quarter, but the company’s profits suffered as a result. KB Home saw their gross profit margin fall from 18.8 percent last year to only 16.2 percent this year. KB … Read More

CoreLogic: Houston Texas Now 2nd Most Overvalued Housing Market In U.S.

CoreLogic has a new report out covering the top 100 real estate markets in the U.S., and of the 14 markets now considered overvalued based on long-term sustainable levels, Texas now tops the list. While Austin ranked as the most overheated market, Houston Texas ranked as the 2nd most overvalued housing market in the U.S. based on data for the … Read More

New Home Sales Falling In Houston TX As Inventory Continues To Climb

Metrostudy released an update on new home sales in Houston Texas, and not surprisingly builders are having a much more difficult time moving inventory than they did a year ago. The new report surveying 24 builders in the Houston area showed that contracts were down 5.1 percent as of July while closings were off 12.4 percent compared to July of … Read More

Plunging Oil Prices Showing Up In Houston Texas Housing Data

With the summer’s positive sales numbers¬†it would be easy to say that Houston’s housing market is perfectly healthy with little cause for concern. That would be a mistake, one likely to be made by many local Realtors and economists alike. The truth of the matter is that the commodities crush we’ve seen during the last 12 months is already showing … 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