The outlook for U.S. homebuilders improved to “stable” for the first time in almost four years, Moody’s Investors Service said recently, citing rising sales and the most affordable property market in years.
“Housing starts, new-home sales and existing-home sales are all showing positive trends,” senior housing analyst Joseph Snider said in a note to investors this month. “Operating profits of the rated homebuilders are also expected to show modest improvements in 2010.”
The pace of new-home sales is rising this year after having slowed to a quarter of its July 2005 volume, according to U.S. Commerce Department data.
Horsham, Pa.-based Toll Brothers Inc. has narrowed its losses, and Miami-based Lennar Corp. said in September that it expects to return a profit next year.
D.R. Horton Inc., based in Fort Worth, Texas, reported a net loss for the past three years, which chief financial officer Bill Wheat said this month he’s aiming to reverse in 2010.
Builders are benefiting from an $8,000 federal tax credit for first-time buyers, which lawmakers extended and expanded to run through the spring selling season.
Bloomberg News
