RECENT Real Estate RESEARCH
Foreclosure completions rose by 19,000 units to 55,000 in September. Completions have fallen 18% YoY (year-over-year).
Toll Brothers (TOL) has a market cap of $6.1 billion. After the preliminary 4Q15 earnings report, it fell by 1.2% to close at $34.44 per share as of November 9, 2015.
TRI Pointe Group has a market cap of $2.2 billion. After the 3Q15 earnings report, it rose by 5.6% to close at $13.3 per share as of November 6, 2015.
Homebuilder earnings will be the highlight of this week with builders at two ends of the spectrum announcing their results.
According to the National Association of Realtors, existing home sales grew 4.7% to 5.5 million in September. That’s above the consensus estimate of 5.4 million.
Markets gave a thumbs down to PulteGroup’s 3Q15 earnings. Stock price fell by 6% soon after the earnings release.
This week brings some important housing data. On Monday, we’ll see the National Association of Homebuilders’s sentiment index.
Foreclosure completions rose by 4,000 units to 36,000 in August, according to CoreLogic. Completions have fallen 20% year-over-year.
In September, non-farm payrolls increased by 142,000, missing the Wall Street estimate of 200,000. Private payrolls increased by 118,000, while government jobs rose by 24,000.
Housing starts fell from a downward-revised ~1.16 million to ~1.13 million in August 2015. This was below Wall Street estimates of just over 1.16 million.
Bed Bath & Beyond reported net revenue of $2,995.469 million in 2Q15—a rise of 9.38% compared to net revenue of $2,738.495 million in 1Q15.
Lennar’s homebuilding revenue increased 22% to $2.2 billion from $1.8 billion in the third quarter of 2014.
This week, we’ll see some important real estate–related data, including homebuilder earnings from Lennar and KB Home. We’ll look at existing home sales, the FHFA House Price Index, and new home sales.
Housing starts were at 1,126,000 in August compared to 1,161,000 in July 2015. Although there was a 3% decline from the previous month, they grew 16.6% on a yearly basis.
Toll Brothers is primarily engaged in the development of attached and detached homes in luxury residential communities. It’s a dominant player in the luxury segment with very few comparable competitors.
Housing starts rose from an upward-revised 1,204,000 to 1,206,000 in July. This was well in excess of Wall Street estimates of just over 1.18 million.
A sustained rise or decline in the housing indicators discussed in this series could reveal a pattern or give direction about the industry’s movement.
In July, non-farm payrolls increased by 215,000, missing the Wall Street estimate of 225,000. Private payrolls increased by 210,000, while government jobs rose by 5,000.
D.R. Horton reported 3Q15 revenues of $2.9 billion, a 37% YoY increase and a sequential increase of about 23%. Revenues came in higher than Wall Street expectations of $2.8 billion.
PulteGroup is one of the largest homebuilding companies in the US. The company’s major competitors include D.R. Horton, Lennar, Toll Brothers, and KB Homes.