RE:DR Horton still upbeat on the housing market I listened in on this conference and uit was tough to find any worries about housing.
Some comments:
- In 2018 when rates rose, we saw a quick drop in demand, we're not seeing that this time
- I think the cycle will continue to elongate
- It feels like there's almost been a cultural shift
- Demand is significantly higher than the homes that can be produced
- We have not seen improvement in the supply chain
- Orders were down 10% in the quarter but "it was all our decision to slow production"
- "We saw and continued to see very strong demand"
- Our cycle times continued to expand. We added 2 weeks.
- We didn't want to create a buyer backlog with an unhappy experience
They guided to 88-90K homes this year versus 90-92K so there's less short-term demand for lumber there but if you believe in the longer-term commentary, there's no let-up.
I think we see some of these home builder shares scream higher once 30-year rates stabilize.