The spring selling season of 2025 presents challenges for major homebuilders like D.R. Horton, KB Home, and Lennar, with weaker than anticipated start largely driven by cautious homebuyer sentiment. High mortgage rates and inflation continue to affect consumer confidence, while increasing for-sale housing inventory complicates matters. D.R. Hortonâs CEO noted that the company has had to implement more concessions in certain areas to navigate the surplus inventory. As a result, net new orders for the company fell 15% year-over-year, marking a significant impact on their business.
In response, the company has leaned more heavily on concessions in regions where for-sale housing inventory has risen most.
D.R. Horton CEO Paul Romanowski told investors last week that this year's spring selling season started slower than expected as potential homebuyers have been more cautious.
Despite macroeconomic factors like high mortgage rates and inflation concerns, rising inventory levels in the housing market are the primary challenge facing D.R. Horton this spring.
Romanowski pointed out that the macro environment hasn't changed the pace or concessions as much as it's been the availability of inventory in the market.
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