Ratings agency Standard & Poors has more bad news for homebuilders. The firm expects their results to keep deteriorating and has 18 of the 22 companies it follows on watch for possible downgrades. Three others are in default. Only one, NVR, has a stable outlook.
New home deliveries for the group fell 33% in November. The average sale price fell 9% to $273,000.
“We believe that new housing starts may bottom out this quarter at their lowest levels since the end of World War II, but that excess supply and weaker demand will continue to push prices down through the middle of next year,” analyst James Fielding says.
If you want to brighten somebody’s holiday, visit a new home showroom.