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New home sales as we told you topped expectations the data came out today for the month of April home prices soared to the second highest level.
Since the recession began so we would bring him.
The very first home builder that have the guts to go public since the crisis began that.
The first in nearly a decade -- point homes went public January 31.
And of course what was interesting there was -- 2004 are we haven't seen.
We haven't -- -- IPO of our home builder and then here came -- point what gave you the guts to do something like that during what was still very much too tentative.
Touch and go time for the housing industry.
I was you know it it was a -- at a time but we had a strategic partnership that we form -- very stern -- and Starwood capital on September 2010.
And the market says we were winding down 2012.
We're looking at at some capital raising ideas sand and one of the options to us was the equity markets and -- -- they came together quite nicely obviously.
In completing the you know the first IPO publicly traded new home builder in ten years as you mentioned.
Well you you're different from many home -- you don't just pick a point on the map your tending to go toward areas that are.
Not coastal because of that there isn't a lot of property in the series at the moment plus it's getting a little more expensive is it not so.
What makes up perfect fertile building ground for a company like tract point.
What I think are out of business models that is a very good must fertile model for homebuilding we're building in northern California Southern California.
And now Denver there -- -- building along all the major transportation court orders.
We see all the employment growth here in California so our model as a new home building company.
In this business without any legacy assets in a clear runway -- this set up perfectly for the for the growth of this business.
We just showed a home in San Jose that you're building the executive level homes and -- they're not entirely it.
It expensive more than a million dollars a piece of course in New York -- everybody would grab this in two seconds but.
Your profile as you look for further away from those series of more inland -- this -- -- Southern California Irvine Riverside.
-- tell you what you think about Colorado the Colorado was an area that was hit hard by the housing crisis house that doing.
Colorado is doing very well builders right now -- -- on anywhere from three and a half to four homes per month.
And we seem pricey power -- to 10% year over year.
And again the Denver market is is very strong because the housing not not the housing -- -- the employment growth.
That is fit into that housing growth over the last two years.
Well that that becomes.
An important point about whether we see a true recovery and as you look at what.
You're seeing sort of nationwide what would you avoid what regions do you say where we were not interest in going in -- Well -- our focus is really the southwestern region right now we're in California as I mentioned again.
In Colorado and as you look at our our playbook for this for this year.
You know our company's gonna grow from doing 700 the 350 closings this year compared.
77 last year so I really a growth company in California and -- Colorado.
Our revenues will top out at about 250 -- -- 260 million compared to 77 million last year so.
We think we're very uniquely positioned for the growth here in our core markets.
What about the mortgage rates up -- suddenly we start to see that what thirty year fixed I was just checking.
Nothing too too horrible it's still in the threes but then you start to look at the Jumbo loans and now we're bumping up against the 4% levels.
It to get the -- -- -- to do little fancy footwork even but are you worried about what the Fed might eventually do you just heard Ben Bernanke and company yesterday hinting that they might.
Slowed down what has been -- very friendly behavior.
On behalf of the Fed to the housing industry.
-- actually my personal opinion is -- I do believe that that is fed needs to slow down some of their bond purchases I mean the the attractive interest rates has been deathly then -- only need the housing recovery.
And I think a gradual lead up on on the panel.
By the said -- actually -- a more consistent and recovery in the housing business.
If you look at interest rates today in our average loan is about 450000.
That at 4% debt that mortgages only around 2100 dollars a month.
You compare that's Iran send in throughout California that can -- deficit as high as 5000.
The ratio of of Randy Jackson owning a house is very very much in our favor.
We're looking at the other home builder IPOs that came after you Taylor Morris -- William Lyon as well your stock is down about five point 7% since you went public however.
Your most recent quarter he swung to a profit.
We're watching very start what's a very Smart guy.
You are your dad until conceivable followed this story very closely thank you for joining us on Fox Business.
-- -- but our tried point -- CEO we.
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