High Mortgage Rates Saw Cancellations Jump 68% for Homebuilder KB Homes in Q4

Homebuilder KB Homes reported worse than expected fiscal fourth quarter 2022 earnings after the market Wednesday. KBH missed EPS by $0.38 and also missed on revenues. Results were “sharply lower demand stemming from higher mortgage interest rates, inflation and other macroeconomic and geopolitical concerns.” Net orders decreased 80% yr/yr to 692. The company guided FY23 revenue inline. KBH shares were down 2.1% after hours. It has been a difficult time for home buyers and home builders alike with sliding home … Continue reading “High Mortgage Rates Saw Cancellations Jump 68% for Homebuilder KB Homes in Q4”

Homebuilder KB Homes Earnings Outlook in a Soft Property Market

Homebuilder KB Homes reports fiscal fourth quarter 2022 earnings after the market Wednesday. It has been a difficult time for home buyers and home builders alike with sliding home sales and affordability squeezed with high interest rates and inflation. Affordability remains the major issue; mortgage demand remains near its lowest level since 1997. Redfin reported pending home sales were down 32% year over year for the four-week period ending January 1. Real estate is experiencing record-low new listings. Analysts are … Continue reading “Homebuilder KB Homes Earnings Outlook in a Soft Property Market”

Lennar Guides Lower on Weaker New Home Orders with Rising Rates and Elevated Inflation

Lennar Corporation reported better than expected Q4 earnings Wednesday, however forecasted a slowdown in orders for new homes as higher mortgage rates have crushed affordability. $LEN revenue was slightly above analyst forecasts. Lennar fell 2.6% in the premarket with high labor costs, a potential impending recession, an aggressive Federal Reserve and likely margin contraction as overhanging the home builder. LEN missed its new orders forecast of 14,000-15,500 for Q4, orders were just 13,200, a 15% decline yr/yr. Lennar is the … Continue reading “Lennar Guides Lower on Weaker New Home Orders with Rising Rates and Elevated Inflation”

Australian Household Wealth Hit a Record $14.9 Trillion in Q1 2022 Rising 15.3 per cent Over the Year

Australia’s total household wealth hit a record $14.9 trillion at the end of March, the Australian Bureau of Statistics said Thursday. Australian household wealth increased by 15.3 per cent in the year to March 31, it grew by another 1.2 per cent in the first quarter of the year and surged 35.5 per cent since the beginning of the COVID-19 pandemic. In comparison Americans’ household wealth took a hit in the first quarter of 2022, it fell to $149.3T. Both … Continue reading “Australian Household Wealth Hit a Record $14.9 Trillion in Q1 2022 Rising 15.3 per cent Over the Year”

KB Homes New Homes Average Selling Price Up 21% Year-on-Year but Sales Pace Slackened

KB Homes reported better than expected Q2 earnings after the market Wednesday, however its sales pace slackened as buyers faced higher mortgage interest rates and soaring inflation. The stock was higher with other homebuilders after the report. Earlier today the Mortgage Bankers Association showed mortgage applications in the US w.e. 17 June rose another 4.2% after rising 6.6% the prior week. Buyers appear to be trying to get in ahead of more Fed rate rises. The average long-term mortgage rate climbed … Continue reading “KB Homes New Homes Average Selling Price Up 21% Year-on-Year but Sales Pace Slackened”

American Household Wealth Falls $1.49.3 Trillion Losing $3.0 trillion in Stocks in Q1 2022

Americans’ household wealth took a hit in the first quarter of 2022, it fell to $149.3T. Stock prices fell sharply off record highs after the Federal Reserve began talking of QT and raising rates to combat inflation. Global economy slackness from the Russian invasion of Ukraine and Chinese Covid lockdowns also impacted asset prices negatively. Still Household Net Worth was up $12.706 TN (9.3%) over one year and $37.830 TN (33.9%) over three years – in history’s greatest inflation of … Continue reading “American Household Wealth Falls $1.49.3 Trillion Losing $3.0 trillion in Stocks in Q1 2022”

KB Homes Robust Orders Deliver Highest Backlog in Last 15 Years

KB Homes reported better than expected Q1 earnings after the market Tuesday on lower than expected revenue from the weatherand power issues in Texas. The stock was higher with other homebuilders after robust order numbers. $KBH had the company’s highest backlog level in the last 15 years.

KB Homes Earnings Rise Along With Stronger US Home Sales

KB Homes reported better than expected Q3 earnings after the market Tuesday.  The stock jumped 3% after it had been bid up over 4% with other homebuilders after a robust existing housing sales number before the report. A rise in homesales since the COVID lockdown has suprised many experts..  

Consumer Confidence Slumps As Stimulus Payments Expire

The Conference Board said Consumer Confidence declined in August for the second consecutive month in the US with the index at 84.8 v 93.0 expected and 92.6 in July as the Covid-19 lockdown angt continued and stimulus paymetns expired. Consumers appear to see low interest rates and stimulus payments as a one-off event. Consumers were also more pessimistic about the short-term outlook. 

Toll Brothers Earnings Helped By Cost Reductions as Contracts Fall on Economy Lockdown

Leading luxury homebuilder Toll Brothers reported better than expected first-quarter earnings Wednesday. The stock $TOL rose over 9% on the report after being up over 9% earlier, up 18% on the day on hopes of recovery. Home sales revenues were $1.52 billion, down 11%