U.S. Homebuilding Market Healthy Despite Economy
A teleconference about the 2001 outlook for U.S. conventional homebuilders and manufactured housing companies will take place March 20 at 10 a.m. EST.
Because reported deliveries and associated revenues for conventional homebuilders reflect sales activity from two to three previous quarters, it will generally take a few quarters before a pullback is reflected in earnings. With current backlogs continuing to look very healthy, most rated homebuilders appear poised to deliver another solid year of financial performance. Beyond 2001, the picture gets cloudier, although not yet alarmingly so. The industry, its demand drivers, and major participants have evolved fairly dramatically over the past decade. As a result, future conventional housing may well prove less volatile than in past cycles.