Homebuilder shares plunge after JP Morgan says recovery will be ‘tepid’


Shares of M.D.C., Beazer and Century Communities and all fell by more than 2 percent, while PulteGroup’s stock and Meritage dropped about 1 percent Friday after the report.

The analyst said rising inventories of new homes and declining affordability will hurt home prices over the next year. He cited J.P. Morgan’s growth estimates of 150,000 jobs per month on average for 2019 vs. the 207,000 monthly job growth average so far this year.

“We expect builder fundamentals to moderate over the next two years, which include a continued softer order growth rate in 2H18 and gross margins peaking over the next 12 months,” he said.

Source link

Products You May Like

Articles You May Like

Paychex shares fall after Bank of America downgrades, blaming ‘excessive valuation’
NBC to remove The Office from Netflix
Monzo doubles valuation to $2.5 billion with Y Combinator-led funding
Star Wars Galaxy’s Edge is now open, but you aren’t gaurenteed entry
Cuts to Social Security would hurt older, single women most of all

Leave a Reply

Your email address will not be published. Required fields are marked *