1) Homebuyer Demand for Builders (measured by Buyer Traffic) is hovering near the lowest levels EVER right now.
Comparable to 2007-12 Housing Crash.
And April 2020 when lockdowns meant no one could tour building sites. pic.twitter.com/HJzx91Akzx
— Nick Gerli (@nickgerli1) January 31, 2023
3) Yet, amazingly, PulteGroup's stock price SURGED today by almost +9%.
The mainstream consensus is that it was a GOOD Earnings Report. Barron's said Pulte is seeing more homebuyer demand.
How is that possible? pic.twitter.com/FOCdyg0UG5
— Nick Gerli (@nickgerli1) January 31, 2023
5) But today's Sales Orders look awful. They're back down below pre-pandemic levels.
Meaning Builder Revenues are going to crash throughout 2023.
-40% decline in Sales Orders will become -40% decline in Revenue.
And Wall Street will definitely notice that.
— Nick Gerli (@nickgerli1) January 31, 2023
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