CCS Don't blame you for being nervous about this homebuilder. I am overweight the sector but also have been casting a wary eye with all the recent discussion about supply chain shortages causing delays in closings. It remains a sellers market as there are not enough homes being built to meet demand. But shortages are spreading to components like appliances, windows, roofing, drywall, fixtures, etc. Then there is a shortage of lots and building departments are getting really backed up on plan reviews and issuing permits.
The good news is that this will prevent homebuilders from building too much inventory, so we will likely not go through a boom bust cycle as often happens with the home builders. Profit margins are also expanding as the strong market has allowed builders price increases to hold and even continue.
Earnings reports come out for several of the builders next week. It will be interesting.
