NVR(US:NVR) ZACKS·2024-12-23 14:51Core Insights - Existing home sales in the United States increased in November, driven by optimism surrounding Fed rate cuts, stable mortgage rates, and improvements in the job market [1][8] - The median existing-home sales price rose 4.7% year over year to $406,100, influenced by declining housing inventory and increasing demand [2][15] Sales Performance - Existing home sales grew 4.8% month-over-month and 6.1% year-over-year, reaching a seasonally adjusted annual rate of 4.15 million, marking the largest year-over-year gain since June 2021 [15] - Sales in the Northeast, Midwest, and South regions saw significant increases, with year-over-year growth of 6.3%, 5.3%, and 3.3% respectively, while the West region remained flat [6][15] First-Time Buyers - First-time buyers accounted for 30% of sales in November, an increase from 27% in the previous month but a decrease from 31% a year ago [7] Housing Inventory - Total housing inventory at the end of November was 1.33 million units, down 2.9% from October but up 17.7% from the previous year [19] - The time to exhaust current inventory decreased to 3.8 months from 4.2 months in October [19] Mortgage Rates - The 30-year fixed-rate mortgage was reported at 6.72%, reflecting a 12 basis point increase from the previous week and a 5 basis point increase year-over-year [16] - The new normal for mortgage rates is expected to stabilize between 5.5% and 6.5% [20] Homebuilder Outlook - Homebuilders such as Taylor Morrison, NVR, and Tri Pointe Homes are expected to benefit from macroeconomic tailwinds, with projected earnings per share growth for 2025 of 11.2%, 7.4%, and 1.7% respectively [21][18][14] - Despite inflationary pressures, these companies are anticipated to experience growth in the near term [21]