Morsa Images By Charlie Choi & Samuel Wilamowsky US housing has weathered surging mortgage rates. Thin inventory and pent-up demand could create opportunity. The US housing market continues to defy traditional notions about rising rates. Across much of the US, prices have been resilient, even as mortgage rates have climbed to 20-year highs. For those…
VIKTOR FEDORENKO/iStock via Getty Images Synopsis James Hardie Industries (NYSE:JHX) specializes in the production and sale of fiber cement and fiber gypsum building solutions. JHX’s last three years financial results have shown consistent net sales growth. In addition, it was able to maintain its margins throughout the same period by focusing on selling higher-margin products…
PM Images/DigitalVision via Getty Images It has been some time since we updated the views on Greystone Housing Impact Investors LP. (NYSE:GHI). In November 2022, we took a negative stance on the company in light of the increasing risks to fund the distribution. We maintained that into February 2023, but the large price decline after…
Mireya Acierto/DigitalVision via Getty Images Last May, I published an article on tiny home builder Legacy Housing Corp.(NASDAQ:LEGH) wherein I pointed out that the company and the housing industry in general were in the throes of a housing downturn, which appeared to impact even the lower-end of the housing market. Since then, I have not…
PM Images By Mehdi Benatiya Andaloussi, Economist, World Economic Outlook Division of the IMF’s Research Department; Nina Biljanovska, Economist, Macro-Financial Division of the Research Department; Alessia De Stefani, Economist, IMF Research Department; and Rui C. Mano, Deputy Division Chief, IMF’s Research Department Effects may be delayed in some countries: if interest rates remain higher for…
XH4D/E+ via Getty Images In my last article about Nemetschek SE (OTCPK:NEMTF) published in August 2023 I was rather bearish (or at least very cautious) about the stock as an investment, and I wrote: Nemetschek already declined about 60% from its previous all-time high and this is already a steep decline. And right now, the…
JasonDoiy/iStock via Getty Images By Arthur Jones, Senior Director, Global Research and Strategy The U.S. multifamily housing sector faces challenges from both overdevelopment and capital market pressures, with ongoing issues anticipated through 2025. However, solid macroeconomic fundamentals and sustained demand, particularly from younger generations favoring rentals, offer potential opportunities in the medium term for well-capitalized…
halbergman Co-authored by Treading Softly. Finding a home is an important step for every person. The ability to find a place to live is essential to be able to establish a home base that you then operate from, whether you’re going to work, whether it’s a place to simply cook a meal or to lay…
Feverpitched Matterport’s (NASDAQ:MTTR) business continues to grow, despite weak conditions in its core real estate market, indicating broader adoption of its subscription solution. The introduction of Property Intelligence could also provide a tailwind in coming years. Matterport’s losses remain large though, and the company has made little progress towards profitability in recent quarters. While losses…
ArtistGNDphotography From my experience, some of the best investment returns come about when you marry the investment philosophies of value investing and contrarian investing. As an example of how this can prove to be a success, we need only look at the housing market. Around a year ago, I found myself bearish on the space…
Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. France is seeking to clamp down on Airbnb and other holiday rental companies, spurred on by mayors in tourist destinations such as the Alps and the Basque country who are concerned that the platforms are…
ArtistGNDphotography Investment thesis My initial “Strong Buy” rating for D.R. Horton (NYSE:DHI), which I shared in early September, aged exceptionally well because the stock has rallied by 35% since then. To add context, the S&P 500 appreciated 6.5% over the same period. Today, I briefly summarize recent developments and share my FQ1 2024 earnings preview….
onurdongel/E+ via Getty Images Synopsis Armstrong World Industries (NYSE:AWI) is a leading manufacturer of innovative commercial and residential ceiling, wall, and suspension system solutions. AWI’s historical financials have shown a robust recovery in revenue growth from the impact of COVID-19, but I do notice a slowdown in growth due to weakening housing demand. In addition,…
Inna Kot Shares of First American Financial (NYSE:FAF) have returned over 25% this year including dividends, largely keeping pace with the broader market even as its title insurance business has faced a significant downturn. I expect recovery in this unit to be slow, while lower rates could begin to reduce investment income by mid-year. As…
Stewart Cohen/DigitalVision via Getty Images While the battle over inflation rages on into the end of 2023 and the Federal Reserve considers its next move with respect to interest rates, the housing market remains constrained by high mortgage rates and low inventory. According to Statista, U.S. home sales declined in 2022 after surging in 2021…
spxChrome Company Description Legacy Housing Corporation (NASDAQ:LEGH) – Consumer Durables – Homebuilding Founded in 2005, Legacy Housing Corporation (“the company”) is one of the leading manufacturers of prefabricated homes primarily operating in the southern United States. It offers a vertically integrated solution, from manufacturing to distribution (i.e., through 156 independent and 13 company-owned stores) and…
Greystone Housing Impact Investors LP. (NYSE:GHI) Q3 2023 Earnings Conference Call November 8, 2023 4:30 PM ET Company Participants Kenneth Rogozinski – CEO Jesse Coury – CFO Conference Call Participants Matthew Erdner – Jones Trading Stephen Laws – Raymond James Christopher Muller – JMP Securities Ron Lane – Value Forum Operator Greetings, and welcome to…
halbergman Mortgage rates officially hit 8% today. It’s amazing considering mortgage rates were as low as 2.5% back in just 2020. But it isn’t the high rate that is so alarming – it’s the rate of change. And this is what separates this period from any period in the past. The Fed has made an…
JHVEPhoto/iStock Editorial via Getty Images Share of MGIC Investment Corporation (NYSE:MTG) have been a strong performer over the past year, rising 35%. Still, shares are only trading around book value, and given the likelihood of extremely low losses on the majority of its insured portfolio and benefit of rising interest rates on investment income, shares…
huffychic Co-authored by Treading Softly. These days, the mindset of “a dollar saved is a dollar earned” rings exceptionally true. Everything from gasoline to eggs and coffee to clothes has seen a sharp rise in cost. I’ve long been zeroed in on value. Cost is what you pay; value is what you get. For some…
eyecrave productions Home listings and price reductions are popping up like measles. You can see this by signing in to Zillow (or many other sites). Meanwhile, offers are increasingly scarce, and a quick look at any mortgage calculator shows why. When Canadian variable rate mortgages were available at 1.65% from 2020 to early 2022, one…
onurdongel Investment thesis Our current investment thesis is: SKY is a well-managed business with a strong value proposition to markets. It has a strong retail presence across the US, which could be significantly enhanced if the Regional Homes deal closes. Further, it has deep expertise in manufacturing and is focused on innovating to improve customization…
onurdongel Summary This post is to provide an update on my thoughts on the business and stock of Installed Building Products, Inc. (NYSE:IBP). IBP specializes in insulation installation for residential and commercial builders across the contiguous United States. They also offer a diverse range of installation services for various related building products. These services are…
Boy Wirat By Erik Norland Over the past 18 months, U.S. mortgage rates have soared from 2.9% to 7.6%, their highest since 2001. Will this tremendous increase in mortgage rates cause the U.S. housing market to crash like it did in 2008? On one hand, higher mortgages have led to a steady decrease in the…
krblokhin/iStock Editorial via Getty Images Shares of PulteGroup (NYSE:PHM) have been a very strong performer over the past year, nearly doubling. This has happened even as mortgages rates have risen dramatically, causing some cooling in the housing market and concerns of an even deeper downturn. Pulte has been a standout, actually growing its business over…
gopixa In Thursday’s Closer, we discussed a couple of recent releases of alternative housing data sets including the latest delinquency data from Black Knight and housing inventory numbers from Realtor.com. Zeroing on the latter, Realtor.com’s August inventory data showed only 585K active listings nationally after seasonal adjustment. Inventories have been drawn upon for seven months…
The recent decision by the Bank of England (BoE) to increase interest rates has further compounded the issue of declining home sales in the UK. The UK housing market, which has been known for its resilience and fluctuating dynamics, is experiencing a significant downturn in demand for homes. In a recent revelation, Zoopla, a prominent…
halbergman Company Presentation Founded in 1998 and based in Dallas, Texas, Builders FirstSource (NYSE:BLDR) is a leading supplier of building materials and construction services in the United States. BLDR operates a network of distribution centers and manufacturing facilities across the country, serving customers in the residential construction, remodeling, and commercial construction markets. The firm operates…
This is an opinion editorial by Leon Wankum, a HODLer who is active in real estate and venture capital with a master’s degree in financial economics. On August 15, 1971, U.S. President Richard Nixon announced that the United States would end the convertibility of the U.S. dollar into gold. Since then, central banks around the…