1054 ET - Challenges for home builders in 2024 are expected to continue this year, with concerns centering around rising land prices and greater competition by way of increasing inventory and higher mortgage rates, say BofA Securities analysts in a research note. The analysts expect order growth to come at the expense of margins for home builders, an issue being followed closely as they dole out incentives to coax buyers off the sidelines. "We think builders will slow the pace of starts if spring selling remains choppy and mortgage rates do not decline. Housing markets in the Northeast, Midwest and Mid-Atlantic look poised to outperform markets in the Southeast, Texas, Florida, Mountain states and Southwest," say the analysts. BofA downgrades D.R. Horton to neutral and Smith Douglas Homes to underperform from neutral. (denny.jacob@wsj.com; @pennedbyden)
(END) Dow Jones Newswires
January 27, 2025 10:54 ET (15:54 GMT)
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