Home builder confidence surged in September to match its highest reading in a decade, according to the National Association of Home Builders.
The NAHB’s index jumped six points to 65 in September. That was the highest since last October, which was the highest since the height of the housing boom. Economists surveyed by MarketWatch had forecast a 60 reading. The gauge of current sales conditions soared 6 points to a cycle high of 71 and the index of future sales jumped 5 points, also touching 71. The index that tracks buyer traffic rose four points to 48. It hasn’t topped the neutral 50 mark since mid-2005. In a release, NAHB noted that builder sentiment is being bolstered by the presence of “more serious buyers.” The Commerce Department releases August housing starts data Tuesday, and the median forecast is for a 1.19 million pace, down a bit from the 1.21 million notched in July.
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PulteGroup has named company President Ryan Marshall as the new Chief Executive Officer, effective immediately. Mr. Marshall, who has also become a member of the Board, succeeds Richard J. Dugas, Jr. who earlier this year announced his intent to retire. Mr. Dugas will continue as Executive Chairman of the Board through the Company’s 2017 annual meeting of shareholders.
Having managed many of the Company’s largest operations during his tenure, Mr. Marshall has a deep understanding of the homebuilding business. Marshall most recently served as PulteGroup’s President with responsibility for the Company’s homebuilding operations and its marketing and strategy departments. Prior to being named President, Mr. Marshall was Executive Vice President of Homebuilding Operations. Other previous roles included Area President for the Company’s Southeast Area, Area President for Florida, Division President in both South Florida and Orlando, and Area Vice President of Finance. In those roles, he has managed various financial and operating functions including financial reporting, land acquisition, and strategic market risk and opportunity analysis. “After a thorough evaluation of internal and external candidates, the Board determined that Ryan was clearly the best-qualified person to lead PulteGroup as it continues to implement its Value Creation strategy,” said Patrick J. O’Leary, leader of the independent five member CEO search committee of the PulteGroup Board. “Over his more than 15 year career at PulteGroup, Ryan has proven to be an outstanding leader with demonstrated success in managing homebuilding operations through all stages of the housing cycle.” “I am honored to lead this great organization and excited about the tremendous opportunities PulteGroup has for ongoing success.” said Marshall. “Our diversified geographic footprint and broad product portfolio provide distinct competitive advantages that we will continue to leverage. Reflecting on the significant operating and financial progress we have achieved over the past few years pursuing our Value Creation strategy, I am confident that we have the resources and the capabilities to further expand our share of the U.S. housing market while continuing to realize high returns on invested capital.” Lead Independent Director James J. Postl added, “On behalf of the Board, I would like to thank Richard Dugas for his significant accomplishments as our Chief Executive Officer over the past 13 years, highlighted by the Value Creation strategy he helped launch in 2011. His passionate leadership and clear vision have positioned the Company to move ahead with new leadership from a position of strength.” “Ryan is a skilled operating executive who thinks strategically about long-term initiatives in the context of housing industry cycles, and I am delighted by his selection as PulteGroup's next CEO,” said Mr. Dugas. “I am confident that PulteGroup will continue to make strides under Ryan’s leadership, and I look forward to working with him through a seamless transition.” Mr. Marshall received a Bachelor of Arts in accounting from the University of Utah and a Master of Business Administration from Arizona State University. He is also a Certified Public Accountant. D.R. Horton expands its presence in the Southeast and Arizona markets as it plans to acquire Wilson Parker Homes. Wilson Parker operates in Atlanta and Augusta, Ga.; Raleigh, N.C.; Columbia, S.C., and Phoenix, Ariz.
"Their well-established lot position makes them a great fit as we continue to expand our presence in the greater Atlanta area," said Donald R. Horton, chairman of the Fort Worth, Texas-based homebuilding giant. "This acquisition will further expand D.R. Horton’s industry-leading market share in Atlanta to greater than 20 percent in 2016, in addition to improving our market share in Augusta, Raleigh and Phoenix.” D.R. Horton expects to pay approximately $90 million in cash for the purchase. The homebuilding assets acquired include approximately 490 lots, 390 homes in inventory and 300 homes in sales order backlog, the majority of which relate to Wilson Parker’s Atlanta operations. D.R. Horton also acquired control of approximately 1,850 lots through option contracts. For the twelve months ended June 30, 2016, Wilson Parker closed 906 homes ($201 million in revenue) with an average home size of approximately 2,700 square feet and an average sales price of $222,000. |
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