New Homes at Biggest Discount to Existing Since 1968 as Prices Slide
DHI is trading near its 52-week low of $131.75 (14% above the low) on light trading volume (0.1× avg).
Summary
New homes are now selling at their largest discount to existing homes since 1968, a historic inversion that signals deep distress in the builder market. U.S. home values fell for the 12th straight month in May, down ~3% on an inflation-adjusted basis, per S&P data released July 28. This macro pressure directly hits D.R. Horton, which already cut its full-year revenue guidance on July 21 and saw margins squeezed by rising incentives. The combination of falling prices and forced discounting suggests the affordability crisis is worsening faster than the company's recent guidance implies. Watch for further guidance cuts or margin erosion when peers report.
At the time of this announcement, DHI was trading at $149.91 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $41.9B. The 52-week trading range was $131.75 to $184.55. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.