Financial Data and Key Metrics Changes - Net sales increased by 2% year-over-year to $657 million, while net income attributable to Champion Homes decreased by 12% year-over-year to $54 million, or earnings of $0.97 per diluted share [18][21] - The average selling price (ASP) per U.S. home sold increased by 5% to $99,300, driven by changes in product mix and increased prices on new homes sold through company-owned retail sales centers [19][21] - Consolidated gross profit decreased by 5% to $172 million, with a gross margin of 26.2%, down 190 basis points compared to the prior year [20][21] Business Line Data and Key Metrics Changes - Sales to the independent retail channel decreased year-over-year, while captive retail sales increased year-over-year, representing 38% of consolidated sales in Q3 versus 35% last year [12][21] - Community channel sales were down year-over-year, but positive feedback was received regarding new products showcased at the Louisville Home Show [13][19] - Sales through the builder developer channel grew in the third quarter compared to the same period last year [14] Market Data and Key Metrics Changes - Manufacturing backlogs decreased sequentially by 15% to $266 million, with average backlog lead time ending the quarter at 7 weeks [10][11] - Canadian revenue during the quarter was $26 million, representing a 3% increase in the number of homes sold versus the prior year, while the average home selling price in Canada decreased by 2% to $120,000 [19][20] Company Strategy and Development Direction - The company aims to increase awareness and demand for its products, with a focus on building trust with consumers and product innovation [6][7] - Legislative efforts are being monitored closely, with a strong bipartisan focus on solving the housing crisis, which is seen as a foundation for future growth [8][9] - The company is committed to expanding its product offerings to attract a broader segment of new buyers and address affordability issues in the housing market [7][9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the fourth quarter, expecting revenue to be up low single digits versus the prior year, with gross margin anticipated to be in the 25%-26% range [24][25] - The company is focused on executing its strategic initiatives while managing SG&A prudently, despite challenges in the macroeconomic environment [24][25] - Management highlighted the importance of engaging with consumers and adapting to market conditions as part of their strategy moving forward [40][84] Other Important Information - The company announced a $50 million share repurchase during the quarter and refreshed its $150 million share repurchase authority, reflecting confidence in its cash generation capabilities [22][23] - The sale of Triad's parent company, ECN Capital, is progressing well, with expected proceeds of approximately CAD 189 million to Champion [16] Q&A Session Summary Question: Can you provide more color on the geographic environment and weather-related impacts? - Management noted that there were no unusual geographic trends and that weather-related delays impacted production days, but they are working to make up for lost time [28][29] Question: Was the increase in ASPs at captive retail due to mix or pricing? - Management confirmed that both pricing and mix contributed to the higher ASPs year-over-year [30][31] Question: What is the outlook for the community channel? - Management indicated that they are working closely with community channel partners and are optimistic about new product feedback as they approach the spring selling season [41][43] Question: Can you elaborate on the margin expectations for the next quarter? - Management highlighted that gross margin variability is expected, with a focus on product mix and channel dynamics impacting margins [46][48] Question: What are the expectations for backlog and revenue guidance? - Management expects a continuation of the order flow seen in Q3, with a positive outlook for backlog and revenue in Q4 [67][68]

Core Viewpoint - The U.S. housing market is facing potential challenges, with tighter lending standards and a significant shortage of homes contributing to elevated prices, despite rising mortgage rates [1][4]. Group 1: Market Conditions - Lending standards are currently tighter than during the subprime era, resulting in less widespread negative equity among homeowners [1]. - Zillow estimates a shortage of approximately 4.7 million homes in the U.S., which has helped maintain high housing prices [1]. - The average rate on a 30-year fixed mortgage has increased from below 3% to over 6.1% in recent years, indicating a significant rise in borrowing costs [2]. Group 2: Price Trends - The S&P CoreLogic Case-Shiller Home Price Index has seen a more than 43% increase in single-family home prices over the past five years [2]. - Despite rising mortgage rates, home prices have not adjusted downward to align with the higher borrowing costs, creating a disconnect in the market [3]. Group 3: Homeowner Behavior - Many homeowners are reluctant to sell due to having locked in ultra-low mortgage rates, which limits the inventory of homes available for sale [4]. - There is a concern that if homeowners are forced to sell at reduced prices, they may not be able to repay their mortgages, potentially leading to a cascading effect in the market [5]. Group 4: Sales Data - According to December 2025 data from the National Association of Realtors, pending home sales decreased by 3% year-over-year and fell by 9.3% since November, suggesting a lack of inventory and limited options for consumers [6]. Group 5: Rental Market Insights - Rents are consistently increasing each year, reflecting broader cost-of-living pressures and indicating that real estate can serve as a hedge against inflation [8]. - The multifamily rental market is viewed as a more resilient investment option, potentially less impacted by economic downturns compared to other asset classes [12].

Core Insights - High mortgage rates have pressured homebuyers, leading to a resurgence in adjustable-rate mortgages (ARMs), reminiscent of the 2008 housing crisis [1][7] - Despite the risks associated with ARMs, improved lending standards are believed to mitigate these risks for current borrowers [2] - The popularity of ARMs has increased significantly, with applications reaching 12.9% of total mortgage applications in mid-September 2025, the highest level since 2008 [3][7] Mortgage Rate Trends - The demand for ARMs has risen sharply as mortgage rates have remained above 6%, particularly after a significant increase in rates in 2022 [4][6] - In contrast, when mortgage rates were low in 2021, the use of ARMs declined [4] Financial Benefits of ARMs - ARMs can provide substantial savings for homebuyers; for instance, a five-year ARM offered an initial rate of approximately 5.79%, compared to 6.31% for traditional 30-year fixed-rate loans, resulting in potential monthly savings of about $200 on a $400,000 loan [6] Market Dynamics - The demand for ARMs inversely correlates with fixed-rate mortgages; as fixed rates rise, borrowers tend to favor ARMs for their lower initial rates [8]

Core Viewpoint - The appeal of micro-condos in Canada is declining as the condo market faces significant downturns, leading to a sharp drop in their value and increased inventory of unsold units [3][7][18]. Market Overview - Canada's condo market is experiencing a downturn not seen since the 1980s, with thousands of unsold units and 18 condo projects cancelled in Toronto over the past year [3][18]. - Micro-condos, which have become prevalent in Toronto and Vancouver, are particularly affected, with their values dropping significantly [3][5]. Supply and Demand Dynamics - An oversupply of condos has resulted from a surge in construction to meet population growth driven by immigration, but recent policy changes have led to a decline in new arrivals [10][11]. - The market saw over 60,000 new units completed recently, but demand has diminished, leading to a significant imbalance [12]. Pricing Trends - Prices for micro-condos have plummeted, with some units that sold for C$500,000 now reselling for C$300,000 or less [7][14]. - The Bank of Canada’s interest rate hikes have contributed to uncertainty in the market, affecting investor confidence and leading to forced sales at losses [13][14]. Investor Behavior - Investors predominantly own condos under 600 square feet, which have increased from 7.7% to 38% of the market since 2016 [5]. - The downturn is shifting the focus of developers from short-term investors to long-term buyers who intend to occupy the units [16]. Rental Market Impact - Renters are benefiting from the increased supply and lower prices, with more options available and improved rental deals [15][17]. - The shift in the market dynamics is allowing some buyers to enter the market at lower prices, creating opportunities for those seeking bargains [17]. Future Outlook - The construction of new units is slowing, which may exacerbate the housing crisis in Canada as the demand for affordable housing remains [18]. - Experts warn that the current low prices may not last, raising concerns about future housing supply implications [19].

Why can’t the government drop ALL mortgage rates to 2% for every single family home as the primary residence ONLY.Wouldn’t that solve the housing crisis?Grant Cardone (@GrantCardone):America should have the lowest interest rates in the world! Trump will fix it!It makes no sense the wealthiest country with the dominant currency has interest rates higher than 34 other countries. ...

Core Viewpoint - Airbnb faces a significant fine of 64 million euros ($75 million) from the Spanish government for advertising unlicensed rental listings, highlighting ongoing tensions regarding overtourism and its impact on the housing crisis in Spain [1][2]. Regulatory Actions - The Spanish government has mandated Airbnb to remove over 120,000 unlicensed listings, indicating a strict regulatory environment for short-term rentals [1]. - The Consumer Affairs Ministry stated that the fine is final and cannot be appealed, although Airbnb plans to challenge this decision in court [2]. Housing Crisis Context - Spain experienced a record 94 million foreign visitors last year, a 10% increase from 2023, contributing to a housing crisis exacerbated by the rise of private tourist accommodations [3]. - Pablo Bustinduy, the consumer affairs minister, emphasized the negative impact of the housing situation on families, stating that some individuals profit at the expense of others [4]. Company Response - Airbnb claims to have been cooperating with the Spanish government to enforce new registration rules for short-term rentals since July [4]. - The company maintains that the ministry's actions contradict applicable regulations in Spain and intends to contest the fine [5]. Market Performance - For the three months ending September 30, Airbnb reported nearly $2 billion in quarterly revenue from the Europe, Middle East, and Africa region, marking a 14% increase year-over-year, outpacing the overall company growth of 10% [7]. - Despite the impending fine, Airbnb's market capitalization exceeds $79 billion, and its shares rose over 2% during trading, indicating investor confidence [8].

Dueling approaches over how to fix America’s housing crisis are splitting Minnesota’s Twin Cities https://t.co/Kdq6sEk7Nt ...

New York developers are transforming office buildings into new apartments in a bid to help offset the city’s worst housing crisis in decades https://t.co/EgY1u08ceb ...

Group 1 - The US housing market is experiencing a crisis characterized by stagnant home prices, high mortgage rates, and declining existing home sales, indicating that the market is not crashing but is in a slow state of recovery [1] - The focus on sustained profitability, including strong margins, stable and expanding free cash flow, and high returns on invested capital, is emphasized as a more reliable driver of returns compared to valuation alone [1] - The investment strategy includes a dual emphasis on undervalued growth stocks and high-quality dividend growers, reflecting a long-term investment approach [1] Group 2 - The analyst has no current stock or derivative positions in the companies mentioned but may initiate a long position in the near future, indicating potential interest in specific stocks [2] - The article expresses personal opinions of the analyst and does not represent any business relationship with the companies mentioned, highlighting an independent perspective [2]

Monetary Policy & Economic Outlook - Bank of Korea believes monetary policy alone cannot control the housing crisis, but is mindful that ample liquidity wouldn't slow the fire [1] - Rate cuts are still on the table due to GDP performing higher than expected and resilient trade [3] - The forecast for this year's growth is 4.9%, well below potential GDP, and 1.6% for next year [4] - The official position is to maintain the easing monetary cycle given the negative output gap, but the magnitude and timing depend on new data [5] - Korea's potential GDP growth rate is probably between 1.8% and 2% due to rapid aging [6] Bond Market & Yields - Bond market yields are reacting not only to domestic factors but also global factors such as the possibility of the US Fed decision and the dollar's movements [7][8] - There is concern that surging yields will affect the monetary transmission mechanism [9] - The Bank of Korea has cut interest rates by 300 basis points since last October and anticipates an easing cycle [9] Trade & Investment - The trade deal between the US and Korea is considered a good development that helps reduce uncertainties regarding tariffs [11] - Implementing the trade deal requires parliamentary approval and enactment of new laws [12] - A commercially viable and win-win program for both the US and Korea is desired, potentially through joint ventures combining US science strengths with Korean application and manufacturing technology [13] - One key focus has been the $350 billion investment fund in the U S [13] Currency & Financial Stability - The Korean market is excessively sensitive to uncertainties affecting the exchange rate, including US stock prices, US economic shutdowns, US Fed policy, and US-China trade relationships [14][15][16] - Depreciation in the Korean Won is hard to judge due to numerous fundamentals [16] - The current level of the Korean Won exchange is mostly dominated by domestic investment abroad, and foreign currency debt level is stable, suggesting no immediate financial stability concerns [18] - The Bank of Korea is willing to intervene if there is excessive movement in the exchange rate [19] Stock Market - Korean stock prices, particularly in the semiconductor industry, are influenced by US technology stock prices, leading to potential volatility [21] - There are concerns about the potential unraveling of high-tech stock prices, especially for domestic retail investors [22] - The price-to-book ratio (PBR) is 1.1%, which is considered below other countries' levels, suggesting the stock market is not significantly overvalued [20]