Sales of newly built homes are on track to set a new record low for this year. The street was expecting a flat to slightly down reading in July, and while the number came in at -0.7%, that figures in a very large downward revision for June.
"The annual rate coming in at 298k for July is just terrible, but what makes things worse are the downward revisions to June and May, -5 percent in revisions are just not very good," says JT Smith of Aristar Funding. "The unadjusted actual sales coming in at 27,000 would make this the 2nd worst July in recorded history."
New homes aren't selling, new delinquencies are rising, and inventories of existing homes are way too high. So why am I titling this blog, Best Builder Bets? Because some analysts out there think that some builders are well-positioned to profit going forward. Jeff Meli of Barclay's Capital is naming names and markets.