American super investor
In doing so,
In the news.
- In recent months, the mainstream media bombarded us with dantesque reports about the real estate market. worldwide and the tightening of financing conditions by banks, got many a real estate developer in trouble.
- Buffett is countering that trend with his purchases. With good reason: the
U.S.construction industry is absolutely on the rise right now.
- Lennar, DR Horton and NVR have recorded a share price increase of about 35 percent since the beginning of the year.
- Thanks to their huge cash reserves and easy access to capital, they are increasing their market share and are able to deliver projects even in a challenging environment.
- In addition, this development also benefits homebuyers. The U.S. market needs many projects to address the housing shortage. Larger companies also provide more efficiency, resulting in lower prices for consumers.
‘New construction’ option attractive again
Worth noting. Paradoxically, the rebound in construction companies is partly due to interest rate hikes in the
- These interest rate hikes have made real estate sales less attractive. Potential home buyers construction companies are taking advantage of.
- All in all, the sector is likely to continue to grow in the coming months. The broader S&P Homebuilders Select Industry index also rose nearly 40 percent in 2023, making it one of the best performers.
© The Content Exchange, source