DFW New Homes

/DFW New Homes

Toll Brothers Net Orders Plunge 13 Percent In Q4

Shares of luxury home builder Toll Brothers fell out of bed today. Toll reported higher net income and higher revenue on a 12 percent increase in home closings for the quarter, but the market sniffed out what some people like myself were anticipating with Toll's latest quarter... a big drop in demand for expensive luxury homes. Toll was clearing out inventory with juicy incentives during the fourth quarter, but net signed contract value plunged 15 percent while net contract units (homes) fell 13 percent. Toll's orders for California nosedived 39 percent. Oops! “In November, we saw [...]

October New Home Sales Collapse, Near Three-Year Low

The Census Bureau numbers for October new home sales posted at a seasonally adjusted annual rate (SAAR) of 544,000 units. This was way below expectations of a 575,000 print, and near a three-year low. As I have been detailing for much of the year, much of that "pent-up demand" that you hear real estate industry mouthpieces talking about is a giant work of fiction, a tired marketing ploy that the media, economists and Realtors have been using in attempt to justify grossly inflated home prices across the U.S. Well, it appears the cat is officially [...]

Beazer Homes Soars On Short Squeeze, Share Repurchase Plan

Beazer Homes shares soared roughly 30 percent in a single day after the Atlanta-based homebuilder reported fourth quarter and full fiscal year results on Tuesday. From the reaction of the stock yesterday, you would think Beazer had patented a new home construction process or something else miraculous. Obviously something was thrilling investors, because it wasn't demand for Beazer homes in the fourth quarter, which fell according to the company's press release. According to Beazer, unit orders during the fourth quarter fell 0.8 percent to 1305 homes. Beazer's homebuilding revenues rose 14 percent for the fourth [...]

High Prices, Higher Rates Stall Dallas Fort Worth New Home Market

High prices and higher rates are hammering the Dallas-Fort Worth new home market. Starts from new home builders are now expected to increase by only a few hundred homes next year. I am not surprised. I covered this development a few days ago in my post on DR Horton's fourth quarter results, but a recent piece in the Dallas Morning News citing an industry insider/expert highlights the failure of local media to report on what is actually happening. My October housing market report for the DFW area explains why the correction in the local real estate [...]

DR Horton Posts Higher Sales And Orders On Lower Average Prices

Dallas-Fort Worth-based DR Horton released fourth quarter numbers showing an 11 percent increase in home closings for the latest three months ending September 30. The company also posted a 11 percent jump in new net sales orders for the fiscal fourth quarter. With 51,857 homes sold during the past year, DR Horton still edges out Lennar as the country's largest home builder by volume. While DR Horton posted solid results on new home sales and profitability in the latest quarter, the housing slowdown is still evident digging into the company's latest numbers. In the midst [...]

New Home Sales Fall 13.2 Percent In September As Inventory Rises 34 Percent

The Census Bureau reported new home sales for September this morning at a seasonally adjusted annual rate of 553,000. This was 5.5 percent below revised August numbers and a 13.2% drop from September last year. The numbers for September new home sales were well below estimates, and they came on top of big downward revisions for previous months as well. Both the median price ($320,000) and the average price ($377,200) were below prices seen last year. The supply of new homes on the market swelled to 7.1 months in September. That translates to a 34% [...]

Yield Surge Hits Already Beaten Down Homebuilder Stocks

The yield surge experienced this week certainly took its toll on homebuilder stocks. As the yield on the benchmark U.S.  10 -Year Treasury eclipsed 3.2 percent this week, you could hear the air coming out of the publicly traded homebuilder sector. The Dow Jones U.S. Home Construction Index was down 27% as of yesterday's close. The year-to-date declines in the stocks of publicly traded homebuilders certainly don't echo the "remarkably positive" economic circumstances that Fed chair Jerome Powell was playing up this week. I can only assume he was referring to the Wall Street bonus [...]

New Home Sales Rise 3.5%, Up 12.7% Year-Over Year

The Census Bureau reported new home sales for August at a seasonally adjusted annual rate of 629,000 units. This was in line with expectations, but previous months were revised downward. The August numbers for new home sales indicated a month-over-month increase of 3.5% and a 12.7% increase above August of last year, a relatively easy comparison. Sales of new homes are up 6.9% year-to-date through August when compared to the same period last year. The median price of a new home contracted in August was $320,200, down about $8,000 from last month, but higher than [...]

New Home Builders Clipped By Weak Order Growth

New home builders had a relatively rough week with several major publicly-traded builders experiencing some nasty haircuts in their stock prices. With the exception of DR Horton, it wasn't a good week for home builder stocks. While Facebook and Twitter were seeing record drops in their share prices, new home builders were also experiencing a hangover from weak growth in new home orders. The Dow Jones Home Construction Index has trended lower for most of the year, down almost 18 percent year-to-date. It doesn't take a rocket scientist to understand why the index peaked just [...]

Denton Home Sales Soar In June As DFW Sales Swoon

DFW home sales fell in June with the diminishing supply of affordable homes. Home prices are still rising in many DFW submarkets, but sales are cooling in the more expensive submarkets. NTREIS stats reflect a sales decline of roughly 3-4 percent in June in the Dallas-Fort Worth area compared to the same month last year. The same held true in Denton County where sales also fell 3-4% compared to last year. The city of Denton bucked the trend in June with a 30 percent sales gain in June. How? In a word, it was all [...]