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

NAR: Existing Home Sales Fizzle In February As Affordability Evaporates

The National Association of Realtors reported that existing home sales fizzled in Februrary, falling to a seasonally adjusted annual rate of 5.08 million. This was a sharp decline from January numbers but 2 percent higher than a year ago. NAR’s chief economist, Lawrence Yun, mentioned the stock market, poor weather on the East coast, as well as supply and affordability … 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

Katy Texas & West Houston Real Estate Market – December 2015

Katy Housing Market

Katy area home sales finished out the year on a bright note in December as both volume and prices held up rather well to the building market pressures. Sales in the Katy area were only down about 5 percent compared to the previous year. Prices were relatively flat in South Katy’s relocation market, while the average price of a home … Read More

Katy Texas & West Houston Real Estate Market – October 2015

Katy Housing Market

Home sales slowed throughout the Houston area in October, and the slowdown in Katy was pronounced. Sales of single-family homes within Katy ISD were down 18 percent year-over-year, a bit worse than the 11 percent slowdown seen in the larger Houston area. The new home market continues to be the story this year, however, as new home sales in Katy … Read More

Katy Texas & West Houston Real Estate Market – September 2015

Katy Housing Market

Katy’s housing market was hanging tough in September, but the latest data shows the local real estate market is rolling over. Single-family home sales within Katy ISD were 8 percent lower compared with the same month last year. New construction sales within Katy ISD dropped 20 percent YoY. While local home prices have continued to eke out year-over-year gains, pressure … 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

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

Katy Texas & West Houston Real Estate Market – June 2015

Katy Housing Market

Home sales rebounded in June, and Houston area home prices set record highs. Houston single family home sales managed to outpace last year’s volume by a small margin, while here in Katy single family sales were just slightly below June of 2014. The rebound for June sales activity brought the Houston numbers closer to break-even, but YTD activity still shows … Read More