Elena Nikulina

Homebuilders reduce reliance on spec home sales, Rick Palacios Jr. indicates

Homebuilders reduce reliance on spec home sales, Rick Palacios Jr. indicates
Homebuilders pivot from spec sales

Rick Palacios Jr. highlights that homebuilders are gradually moving away from finished speculative home sales strategies, which have negatively impacted margins.

This trend is expected to persist as more homebuilder earnings are reported during the week.

Palacios Jr. previously reported that D.R. Horton’s lot costs increased 5% year over year, in line with his residential land survey data here. He also observed that Austin’s single-family rent growth remained negative on an annual basis but was improving here. These updates provide further context around changing conditions in key housing markets.

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