Emerging 2023 housing theme: Big divergence between new home sales (rebounding) & resale sales (still falling per NAR). Builders have inventory to sell & are doing what’s necessary to move it. Resale market is still tight on inventory, and sellers aren’t in a hurry to cut price. (View Tweet)
Home builder gross margins have moderated, which was inevitable. Perhaps more interesting is how several builders are already noting margins stabilizing, which based on this chart would still be above normal levels. https://t.co/BTgPQPEXzv
