Want more housing market stories from Lance Lambert’s ResiClub in your inbox? Subscribe to the ResiClub newsletter. Most Read from Fast Company As ResiClub has closely documented, Florida has been the epicenter of U.S. housing market weakness in 2025. However, KB Home executives now believe the worst may be behind them—at least for their business—in the Sunshine State. While giant homebuilder KB Home—which has a $4.3 billion market capitalization—isn’t ready to call it an inflection point for the entir ...

Sales of newly constructed homes rose at their fastest pace in more than three years last month. Justin Sullivan / Getty Images Close Key Takeaways New homes are now more popular than existing homes, due largely to builder incentives and plentiful inventory, new data released this week showed. Sales of newly-constructed homes in August came in at an annual rate of 800,000, a 20% increase from July's rate of 664,000. It was the fastest pace of sales since early 2022, economists at Wells Fargo noted in a repo ...

Sales of new US single-family homes surged in August, but the boost from declining mortgage rates could be limited by a weakening labor market.New home sales shot up 20.5% to a seasonally adjusted annualized rate of 800,000 units last month, the Commerce Department’s Census Bureau said on Wednesday. The sales pace for July was revised higher to a rate of 664,000 units from the previously reported pace of 652,000 units.New home sales shot up 20.5% to a seasonally adjusted annualized rate of 800,000 units las ...

But first, new home sales just crossing. Diana Ol has those numbers for us. Diana, >> David, a massive beat on new home sales.800,000 seasonally adjusted annualized rate in August. The street was looking for 650. This is up 20.5% from July and up 15.4% from August of 2024.Now, we've been talking about mortgage rates, of course, uh, forever and they didn't come down in August. These numbers are based on signed contracts. So, people out shopping in August when the 30-year fix had not started its steep drop th ...

Sales of new homes posted an unexpected jump in August as builders ramped up discounts and slashed prices to lure buyers. ...

Core Points - LGI Homes has launched the "Make Your Move" National Sales Event, offering special pricing and financing options for homebuyers [1][2] - The event aims to enhance homeownership accessibility, allowing buyers to save up to $50,000 on new homes through various incentives [2][3] - The sales event runs until October 19, 2025, and encourages potential buyers to explore available options online [3] Company Overview - LGI Homes, headquartered in The Woodlands, Texas, operates in 36 markets across 21 states and has closed over 75,000 homes since its inception in 2003 [4] - The company is recognized for its innovative approach to homebuilding and has consistently delivered profitable results, earning accolades for quality construction and customer service [4] - LGI Homes has received multiple workplace awards, including the Top Workplaces USA 2025 Award, reflecting its commitment to employee satisfaction [4]

Core Viewpoint - Home builders are optimistic about a potential rate cut by the Federal Reserve, as indicated by the National Association of Home Builders [1] Industry Summary - The sentiment among home builders is positive, with expectations that a rate cut could stimulate the housing market [1]

Financial Data and Key Metrics Changes - Home sales revenue for Q2 2025 was $105.5 million, a decrease of $3.9 million or 3.6% from $109.4 million in Q2 2024 [10] - The company reported a net loss of $6.3 million for Q2 2025, influenced by a fair value adjustment of $6.2 million related to contingent earn-out liabilities [9] - Gross profit for Q2 2025 was $19.9 million, up $300,000 or 1.5% from $19.6 million in the prior year [11] - Gross margin improved by 100 basis points to 18.9% compared to the same period last year [11] Business Line Data and Key Metrics Changes - Home closings for Q2 2025 totaled 303 homes, down from 337 homes in the prior year [10] - Net new orders for Q2 2025 were 304 homes, down from 323 homes in the prior year [10] - The average sales price for homes was $349,000, significantly lower than the U.S. median sales price of $402,000 [5] Market Data and Key Metrics Changes - Demand trends were inconsistent due to high mortgage rates and affordability concerns, but traffic patterns remained resilient [5] - The company maintained home prices below the industry average to address affordability [5] Company Strategy and Development Direction - The company is focused on rolling out updated home designs, which have shown positive responses and improved profitability [6] - An asset-light strategy is being adhered to in land acquisition, with a focus on stabilizing or lowering direct construction costs [8] - The company aims to drive margin expansion and maintain cost discipline while supporting growth through strategic community openings [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's positioning for the second half of the year, despite challenges in the market [8] - The company believes gross margins will be higher in 2025 compared to 2024 due to product transitions [7] Other Important Information - As of June 30, 2025, the company controlled approximately 7,300 lots, positioning it for future growth [13] - The company had approximately $95.2 million in liquidity as of Q2 2025 [13] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded without further inquiries [15][16]

Core Insights - Smith Douglas Homes Corp. (SDHC) reported revenue of $223.92 million for the quarter ended June 2025, reflecting a year-over-year increase of 1.4% [1] - The earnings per share (EPS) for the same period was -$0.13, a decline from $0.40 a year ago, indicating a significant drop in profitability [1] - The reported revenue exceeded the Zacks Consensus Estimate of $216.52 million by 3.42%, while the EPS fell short of the consensus estimate of $0.25 by 152% [1] Financial Performance Metrics - Net new home orders were 736, slightly below the average estimate of 757 from two analysts [4] - The backlog of homes at the end of the period was 858, compared to the estimated 904 [4] - Home closings totaled 669, surpassing the average estimate of 644 [4] - The number of active communities at the end of the period was 92, exceeding the average estimate of 89 [4] - The average selling price (ASP) of homes closed was $335 million, slightly below the average estimate of $336.31 million [4] Stock Performance - Shares of Smith Douglas Homes Corp. have returned +1.3% over the past month, outperforming the Zacks S&P 500 composite's +0.5% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - In Q2 2025, home closing revenue was $1.6 billion, a 5% decrease year-over-year despite a 1% increase in closing volume, primarily due to increased financing incentives [22][30] - Adjusted home closing gross margin was 21.4%, down from 25.9% in Q2 2024, reflecting higher lock costs and increased use of financing incentives [22][27] - Diluted EPS decreased by 35% year-over-year to $2.04 from $3.15 in Q2 2024 [27][28] Business Line Data and Key Metrics Changes - The company secured orders for 3,914 homes in Q2 2025, with a strong average absorption pace of 4.3 net sales per month [5][13] - Home deliveries totaled 4,170 homes, with backlog conversion exceeding 200% [5][19] - The cancellation rate remained at 10%, lower than historical averages, attributed to a 60-day closing commitment [13][27] Market Data and Key Metrics Changes - The Central Region had the highest average absorption pace of 5.2, followed by the East at 4.1, and the West at 3.9 [17] - Demand was strong in markets like Arizona, Dallas, Houston, and Southern California, while Florida and Colorado faced challenges due to increased existing inventory [17][18] - The average selling price (ASP) on orders decreased by 5% year-over-year to $387,000 due to greater utilization of rate buy-down financing incentives [14][22] Company Strategy and Development Direction - The company focuses on move-in ready inventory and financing incentives to enhance competitiveness in a challenging market [5][8] - An agile business model allows the company to optimize operations and land strategy on a market-by-market basis [11][12] - The company aims for double-digit year-over-year growth in community count, with plans for further expansion in the second half of the year [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that home buying demand has softened due to increased mortgage rates and consumer hesitancy [6][27] - Despite current challenges, management remains optimistic about long-term industry outlook due to favorable demographic trends [7][8] - The company is adjusting its capital allocation strategy to balance land spending and shareholder returns [30][32] Other Important Information - The company reduced land acquisition and development spending by 12% year-over-year to $509 million in Q2 2025 [30] - Share buybacks totaled $45 million in Q2 2025, with a commitment to continue repurchasing shares opportunistically [32][33] - The company maintained a healthy balance sheet with cash of $930 million and no drawn credit facility [29][30] Q&A Session Summary Question: Absorption rates on new communities - Management reported that absorption rates have trended well, with new communities meeting expectations [41] Question: Community count growth expectations - Management expects double-digit growth in community count, with a balanced flow between Q3 and Q4 [43][44] Question: Volume outlook for the remainder of the year - Management indicated that Q3 is expected to be one of the lowest volume quarters due to closed spring demand, but they have the inventory to achieve projected numbers [51] Question: Cash capital allocation and buyback acceleration - Management confirmed plans to accelerate share buybacks due to reduced land spending, balancing cash utilization for new specs [54][56] Question: Gross margin expectations - Management noted that the decline in gross margin is primarily due to lost leverage in Q3, with expectations for recovery in Q4 depending on market conditions [76][81]