Meritage Homes (NYSE:MTH) recently reported its second-quarter earnings, reflecting steady demand for new homes despite ongoing affordability challenges in the housing market. The company managed to post better-than-expected revenues and earnings, with management noting that incentives and price adjustments have kept buyer interest strong. Meritage’s performance stands out among other home builders, with many in the industry benefiting from low resale inventory and buyers increasingly looking to new constructions.
Compared to peers, Meritage’s focus on entry-level homes has positioned it well to capture first-time buyers who are being priced out of existing home inventory. Despite economic headwinds and higher mortgage rates, the builder has maintained healthy margins while carefully managing costs. Investor sentiment toward home builder stocks remains cautious, but Meritage’s results underscore the resilience in this segment of the real estate market.
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