TOL - These Homebuilders Are Buying Back Stock Like Hotcakes
2024-03-19 11:06:14 ET
Summary
- The residential real estate market has experienced a slowdown in turnover, putting a spotlight on newly delivered units for buyers.
- Demand for single-family homes remains high, leading to an upward trend for single-family homebuilders and adjacent industries.
- Homebuilders, such as Toll Brothers, American Woodmark, and KB Home, have implemented large share repurchase programs to enhance share metrics and deliver returns to shareholders in a flexible way.
- We explore industry trends and discuss the buybacks.
The residential real estate market has fundamentally changed over the past several years. Following the pandemic, a series of changes around interest rates reshaped the landscape for home buyers. The impacts were lengthy, but boil down to the highest cost of homeownership in years. As a result, the residential real estate market has virtually frozen over the past 12 months, as both buyers and sellers attempt to digest the information.
Redfin ( RDFN ) provides comprehensive coverage of residential brokerage trends. In a recent article , Redfin described the slowing conditions....
These Homebuilders Are Buying Back Stock Like Hotcakes