"Stocks for D.R. Horton and PulteGroup saw significant gains at 17% and 11.5% respectively, with other major homebuilders following suit, indicating improved market conditions."
"PulteGroup sees the impact of tariffs lowering from an estimated $5,000 per unit to a lesser extent in Q4, which could stabilize home sales."
"Despite high home prices and rising mortgage rates, the housing market remains lukewarm; existing-home sales are around 4 million, while Pulte’s new closings decreased significantly."
"The increased incentives provided to homebuyers have a major impact on builders' margins, with PulteGroup noting costs from incentives now at 8.7% of gross sales prices."
D.R. Horton and PulteGroup experienced notable stock increases, with D.R. Horton up 17% and PulteGroup up 11.5%. For PulteGroup, expected tariff impacts decreased significantly. D.R. Horton reported a slight decline in home sales gross margin, while PulteGroup noted a larger drop. Despite strong stock performance, homebuyer incentives severely affected profit margins, contributing to a challenging housing market characterized by all-time high home prices and near 7% mortgage rates, resulting in depressed existing-home sales and a decline in new closings for PulteGroup.
Read at www.housingwire.com
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