Gary Friedman last night uh guiding lower on margins takes us to a mad dash. >> No, it was not a call that if you're looking for upside. I think that in some ways and I went over this with Ben Stos, my research director, that RH is to housing as strategy is to Bitcoin.I mean, you just they're linked. >> You mean like a leverage play. >> Yeah.And and I feel like that if you're really sure that housing's going to come back, really really sure because if you're just kind of sure that's Home Depot, if you're re ...

The Home Depot has released a restrained preliminary outlook for its 2026 financial year, indicating that it does not expect a near-term rebound in the housing market. For fiscal 2026, the Atlanta-headquartered company forecasts comparable sales to range from flat to an increase of up to 2%. Total sales are projected to rise by between 2.5% and 4.5%. The retailer is targeting an operating margin of 12.4% to 12.6%, with adjusted operating margin estimated at 12.8% to 13%. Diluted earnings per share are ...

Joining me now, Diane King Hall, talking about Toll Brother earnings and more. Good morning, Diane. >> Good morning.It's good to be with you, Nicole. So, shares of Toll Brothers are under some pressure this morning off the back of its view that 2026 may still be bumpy. Uh, and it shows that essentially the housing market is not going to be quick to come out of the woods.There were some uh expectations going into its results that weren't met. They reported mixed numbers for the trailing quarter. Revenue beat ...

Group 1 - The housing market is showing signs of recovery, with increased discussions about rising property prices due to government efforts to stimulate the market [1] - Recent changes in housing provident fund policies include a 30% increase in personal housing loan limits and the ability to withdraw funds for property fees, which may ease the financial burden on homebuyers [1] - The expansion of provident fund usage for renovation costs and the broadening of loan eligibility for individuals contributing in major cities like Beijing and Shenzhen indicates a more supportive environment for home purchases [1] Group 2 - Future property prices are expected to rise, particularly in first-tier and new first-tier cities, including Shenzhen, which serves as a bellwether for the national housing market [3] - The sentiment around property prices has shifted, with a prevailing belief that prices will continue to decline, leading to a reluctance among potential buyers [5] - The current market conditions suggest that the bottom may have been reached, and the potential for price increases exists when the majority of people feel hopeless about the market [7]

Core Insights - Wayfair's total net revenue for Q3 2025 reached $3.1 billion, reflecting an 8.1% year-over-year increase, but the company reported a net loss of $99 million, which is higher than the $42 million loss in 2024 [1] - The number of active customers decreased by 2.3% year-over-year to 21.2 million, yet repeat customers accounted for 80.1% of total orders, up from 79.9% the previous year [2] - The average order value increased to $317, which is $7 higher than the same quarter in 2024 [3] Industry Context - The home decor category is showing signs of recovery, moving past a trend of double-digit declines, according to Wayfair's CEO, although the housing market remains sluggish [4] - Existing home sales in the U.S. are at multi-decade lows, with the average 30-year mortgage rate above 6%, impacting consumer purchasing decisions [4] - The U.S. housing market showed a 1.5% month-over-month increase in existing-home sales in September 2025, with a median sales price of $415,200, up 2.1% year-over-year [5]

Prospective homebuyers have seen a small improvement in market conditions lately. However, the landscape is still pretty bleak, with rates elevated and economic uncertainty high. Sign up for Business Insider's daily markets newsletter here. Aspiring home owners have been waiting anxiously for the market to thaw, but while home sales rose in August, one firm thinks the market is likely to be stuck in the "dark ages" for a while still. Economic intelligence firm Pantheon Macroeconomics recently laid ...

Core Insights - Bassett Furniture Industries' Q3 results indicate a strong position in a recovering furniture industry, with anticipated benefits from potential interest rate cuts in 2025 [1][2] - The company reported a revenue growth of 5.9%, with a 7.3% increase when adjusted for divestiture, surpassing market expectations [2] - Adjusted earnings of $0.09 reflect a significant improvement from a loss of $0.52 in the previous year, with expectations for continued positive performance [3] Financial Performance - The furniture industry is experiencing sustained growth, with Bassett's retail segment leading with a 9.8% increase [2] - The company maintains a strong balance sheet, with a dividend yield of 5.14% and a payout ratio of 88.89% [7] - Cash flow is currently exceeding income, but this imbalance is expected to correct by late 2026, indicating a robust financial condition [8] Market Trends - Institutional investors are actively purchasing furniture stocks, with a 2-to-1 buying ratio, indicating strong market support [4] - Bassett Furniture, along with peers like Haverty and Ethan Allen, is benefiting from high institutional ownership levels, which is expected to support stock prices [5] - The overall sentiment in the housing market is crucial for the industry's growth, with expectations of recovery driving optimism [7]

Core Insights - The real estate market experienced a significant increase in new home sales, rising 20.5% to an annualized rate of 800,000 units, the highest level since January 2022 [1] - Despite the surge in sales, analysts caution that this may be a temporary spike due to homebuilders offering discounts to manage oversupply [2] Sales and Inventory - The increase in demand led to a reduction in new home inventory, which fell to 490,000 units, the lowest level this year [3] - A notable 39% of homebuilders reported price cuts in September, an increase from 37% in August, indicating a sustained effort to attract buyers through discounts [3] Market Trends and Economic Indicators - New homes account for approximately 14% of total US home sales, and month-to-month data can be volatile, making it premature to declare a recovery in the housing market [4] - The 30-year mortgage rate has decreased to 6.26%, the lowest in 11 months, which is favorable for buyers, but high housing prices and a softening labor market remain concerns [4] - Analysts suggest that a significant decline in long-term interest rates is necessary to further stimulate demand in the housing market [4] - If the housing market recovers, it could positively impact overall economic growth and reduce the likelihood of a recession, benefiting risk assets in a non-recessionary rate-cutting cycle [4]

Core Insights - Fannie Mae projects a recovery in the US housing market by 2026, driven by lower mortgage rates and increased home sales activity [1][4] - The forecast indicates mortgage rates could decline to 5.9% by the end of 2026, the lowest since 2022 [2][4] Market Projections - Home sales are expected to reach 4.72 million in 2025 and 5.16 million in 2026, marking an increase of nearly 500,000 [2][3] - Existing home sales may rise by 9.6% year-over-year in 2026, while new home sales could increase by 6.9% [3] - Mortgage originations are projected to total $1.85 trillion in 2025 and $2.32 trillion in 2026, reflecting a $470 billion increase in borrowing activity [3][4] Current Market Conditions - The average 30-year fixed mortgage rate recently decreased to approximately 6.26%, down from a peak of around 7.7% in 2023 [4] - The housing market has been largely stagnant due to high mortgage rates, which have restricted both buyers and sellers [3]

Group 1: Housing Market Overview - New home sales in August increased by over 20% month-over-month, indicating strong demand and a potential turning point for the housing market [1] - Mortgage rates below 6.64% and down to 6% have historically led to improved housing data, with recent purchase application data showing the best performance in eight weeks [2] - The stability of mortgage rates around 6% is crucial for the growth of housing permits and starts, as fluctuations above 7% have historically dampened demand [3][4] Group 2: Builder Dynamics - Publicly traded builders are managing to maintain gross margins despite challenges, while smaller builders face greater risks due to recent job losses in residential construction [7] - Builders are currently focused on selling completed units, which are at historically low levels, prompting a pullback in construction activity [9][10] - The efficiency of builders in selling products contrasts with the existing home sales market, which involves more complex negotiations between sellers and buyers [9] Group 3: Labor Market Implications - The recent surge in single-family home sales occurs amidst a backdrop of job losses in manufacturing and residential construction, raising concerns about the labor market [11][12] - The ability to grow housing permits is essential for stabilizing the labor market related to single-family homes, emphasizing the importance of duration in housing data [12][13] - The current low mortgage rates are attributed to a softer labor market, highlighting the interconnectedness of these economic factors [13]