MTH - Meritage Homes: From The Housing Boom Comes The Bust

• 2020 has seen demand for homes skyrocket as many work-from-home urban workers move to suburbia and mortgage rates collapse.
• The spike in demand has come with a dearth of existing and new home inventory, leading to higher sales prices and stronger margins for developers.
• The boom may become a bust as mounting delayed foreclosures cause existing home inventory to rise tremendously and as 'urban flight' demand wanes.
• Meritage's strong position in the entry-level market has caused its earnings to skyrocket this year, however, it is doubling-down and investing heavily into 2021-2022 communities.
• If 2021-2022 sees a reversal of today's trends, Meritage may find itself in the difficult position of having too much inventory with too little demand.

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