While new home sales are at a five-month lows, home contract signings have fallen on a year-over-year basis for the past 18 months, and bond yields are near recession territory, Lennar executive chairman Stuart Miller and KB Home CEO Jeffrey Mezger have both expressed optimism about the housing market in the near term.
“Our results reflect the fact that the housing market strengthened throughout Q2,” said Stuart Miller, executive Chairman of Lennar Corp., which reported its second quarter earnings Tuesday.
“We don’t see any storm clouds on the horizon in the housing market,” said Jeffrey Mezger, president and CEO of KB Home, when the company took analyst questions on Thursday.
Miller cited those lower mortgage rates, and slower price increases, and said “and that, together with low unemployment, wage growth, consumer confidence and economic growth, drove the consumer to return to a more affordable housing market.”
But there were some curious sentiments in the comments, as well. “We believe that the housing market is generally running in a performance channel that is bounded on the downside by the production deficit that has persisted for the past decade,” Miller added.
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