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Increasing home sales and rising prices are signaling a steady housing recovery how is one of the largest publicly traded homebuilders feeling it.
Let's ask our -- Canadian -- enterprises chairman CEO and president joins me now.
In a Fox Business excellence that somebody questions for you but I do wanna start -- -- quote that you gave to institutional investor demographics is death.
In the homebuilding business.
Who would you Democrat a couple of demographics in terms of the growing US population having it in the end demand for our product.
Is -- but population growth.
And the good news is the population has grown you know and states right now where -- we seeing that growth because the baby boomers are those that are still trying to build a portfolio.
They're the ones that would be the -- going down in a smaller home or buying that second home that retirement home as well.
That particular consumer what it was crucial to U has been under pressure when he sat.
-- net net we -- births minus deaths and look at marriages and divorces and a number of children.
The number of -- holes which is actually the key sub segment of population is projected to grow between one point two and one point four million people.
Every year this decade.
I wouldn't talk about your stock it's been -- that the housing sector of all the -- a 2012 the leading sector.
Of the year last year your stock is up almost a 100% a year over year and yet Goldman Sachs comes up initiate a rating on CNN it has -- on -- What CEOs but when they see that what you say yourself do you really rise you pound the table -- you know.
We have to do.
Our primary business and there's a lot of noise out there in one moment everybody is excited about home builder nor are -- -- moment everybody's nervous.
We just put our head down and keep move marching forward right now it's an incredible opportunity by historical standards were out buying land.
Were growing dollar revenues growing our deliveries.
And our home prices just like Kay Schiller are increasing and that's why our margins have been going up.
One of the things that we've heard is there's actually pressure in the construction industry to find construction workers.
Because a bail shifted trade despite years ago what that are you finding trouble getting those homes built getting staff to bill.
It it is accurate it is more challenging right now because housing sales and starts have been going up so much it is more challenging well let's talk about financing you mentioned land deals.
-- some of the smaller builders have reported they're having trouble getting financing a -- acquire new land that's a bit as crucial obviously for your.
This is as well a larger scale does that affect you a bit actually gives it damages to companies like ourselves that have access to long term capital.
That private builders that depend on bank capital cannot get right now so there's definitely more concentration.
More land acquisition more deliveries coming from larger home -- right now obvious question.
You know obviously have -- for them to stay as low as they are but relativity is back fifty years old in 198380.
The first year after the 8182 recession.
Mortgage rates were over 13%.
And we have more than double.
The housing starts that we do right now.
So people lose perspective.
It in the end you've got to have sheltered the population is growing you need more houses in this car but it is a Canadian gold that's coming in the door right now is that a lower income individual median -- -- high encompass what we're hearing at this point is well is -- that lower income and that's what is still not in the housing market.
Which would signal that there's an upside to be that -- I think you're exactly right it interesting legal lower income -- or traditional first time home buyer.
Has not been able to come in as much because mortgage qualification standards have gotten so strict stricter than we've seen in decades and decades.
That it's difficult for them to enter.
It will return to normal underwriting standards at some point think Qichen after burners and recovery where it -- -- -- still -- that banks are taking you know 456 months ago lungs and that's got to be frustrating for someone like you are having an absolute pleasure to have you on the show thank you for speaking us exclusively today but because while.
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