What Housing Bust? D.R. Horton Stock Soars After Earnings.

Barron's ^ | 04/20/2023 | Ben Levisohn

[millenial4freedom]

D.R. Horton DHI –0.31% stock was jumping after the home builder reported better-than-expected earnings Thursday.

D.R. Horton (ticker: DHI) reported a profit of $2.73 a share in the fiscal second quarter, easily beating analyst forecasts for $1.93, on sales of $7.97 billion, topping estimates for $6.45 billion.

“Despite higher mortgage rates and inflationary pressures, demand improved during the quarter due to normal seasonal factors, coupled with our use of incentives and pricing adjustments to adapt to changing market conditions,” Donald R. Horton, chairman of D.R. Horton’s board, said in a press release. “Although higher interest rates and economic uncertainty may persist for some time, the supply of both new and existing homes at affordable price points remains limited, and demographics supporting housing demand remain favorable.”

[millenial4freedom]

Can the housing market gradually recover even if the economy worsens?

[rktman]

Bust? Someone needs to visit the Reno/Sparks market. The builders here are throwing up houses and apartments like there’s no tomorrow. So much so that there is a push for the city of Sparks to acuire 40,000 acres if federal land on the east side of the current city limits. Infrastructure? Meh! Will get to that eventually.

[freedom1st]

Biden is trying to ruin the housing market with attempt to have people with good credit getting mortgages subsidize mortgage applicants with bad credit.

[Brian Griffin]

There are many, many stock millionaires still.

Lots of people own Apple, Amazon, Alphabet, etc. shares.

[Brian Griffin]

“Last year, the FHFA eliminated upfront fees for first-time buyers who are at or below 100% of their area’s median income, or 120% in areas that are identified as ‘high cost.’”

https://nypost.com/2023/04/16/how-the-us-is-subsidizing-high-risk-homebuyers-at-the-cost-of-those-with-good-credit/

[woodbutcher1963]

There is a SHORTAGE of houses in the country. Every year that we build less than 1.5 MILLION new homes we are at a deficiet to demand. The USA has a population of 330 million people. Based on that population economists state we need to build 1.5 million NEW homes to keep up with our population and growth. On average houses last 75 years(the burn down, floods, hurricanes, earthquakes, etc). So, they need to be replaced.

Ever since 2007 we have built less than 1.5 million new homes with the exception of 1-2 years in that time period. Keep in mind that “new” home can be a single family detached structure. A semi attached condo. An apartment or a mobile home or factory built home.

In general, the US has been building a higher percentage of multi-family homes since 2009 than prior to that. Some of this is due to changing demographics. An average the US is getting OLDER and families are not having as many children.
So, the older people are downsizing at the same time as the 20 and 30 somethings are not having as many kids. IF you do not have kids, there is less of a need to buy the house in the suburbs with better Publik SKOOLS.

[woodbutcher1963]

All REAL ESTATE is local. Reno may be hot, but other markets have already busted.
Check out REVENTURE CONSULTING on YouTube. He makes predictions based on what the average consumer can afford in respective markets vs the price of the average house.

The markets that have already had a price correction are:
Nashville
Austin
SLC
Boise
San Fran
Phoenix
Las Vegas
Portland

Almost all of the above markets BOOMED because of the mass exodus from California in the last few years.

Meanwhile there are other markets that MAY not see any price correction in the next couple years:
Richmond
Pittsburgh
Virginia Beach
Oklahoma City
El Paso
Albany
Louisville

ANY real estate market that has DOUBLED in the last five years (not ten) is most likely due for a correction. Real estate markets that have gone up more gradually have more room to appreciate. You can still buy a single family house in the OKC area for $280K. That same house now in other markets is $450-650K.

[ProtectOurFreedom]

Same scenario in the Coeur d'Alene, Idaho area. At least we are spending $22 million on a new Justice Center Building to accommodate all the new crime that comes with growth. How's that for infrastructure?

[rktman]

Roger that. That OKC house might be in the $600k range in Reno.

[rktman]

Nice. Hopefully all that new crime will actually get prosecuted unlike some other locations.

[woodbutcher1963]

I would be careful about buying in any of the boom markets of the last five years. Some like Boise have already correct 20-25% in the last 1 1/2 years. It will likely correct more over the next couple years.

There are very few markets in the country that are up in housing starts in 2023 in comparison to 2022. I will send you a link to a publication my company pays for.

[rktman]

Well, thanks but we’re past the point of moving anymore. 😁👍

[ProtectOurFreedom]

Idaho is still very good at prosecuting crime and we intend to keep it that way.

[9422WMR]

More liar loans like in 2007?

[rktman]

Maybe we can send some cases your way? 😏👍

[Night Hides Not]

About 30 miles East of Dallas is Rockwall, Fate, and Royse City. Construction continues unabated, prices starting in the $400s. My company just bought 25 acres near Royse City, south of I30, for an apartment complex.

[ProtectOurFreedom]

Nah, we’d have double the size of our new Justice Building AGAIN!

[rktman]

😂👍