Home builders are starting to crack. DR Horton CEO issues big housing market warning.

Home builders are beginning to issue major warnings for the 2025 housing market. This week it was DR Horton. Who warned of slow demand and whose shares dropped 11%.

The issues for these builders, especially across cities in Texas and Florida, is that the buyer demand has dropped and the inventory has spiked. The number of homes for sale in cities like Dallas, Austin, Houston, Tampa, Orlando, and Atlanta has spiked, resulting in these builders facing more competition and being forced to do big mortgage rate buydowns to stimulate sales.
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[ReventureConsulting]

DR Horton is the biggest builder in America and now they're issuing demand warnings on the 2025 housing market.

Make sure to stay up to date on what's happening in your city and ZIP code on Reventure App. How's inventory trending? Where are seller price cuts? And what's the Home Price Forecast? Acess all that data at www.reventure.app

[JesusLeee-ir]

I remember in 2007 when I was working in real estate seeing people buy homes new from builders with the intention of selling before close of escrow to a new buyer for profit. The crash was so brutal and fast that I remember seeing a lot of these units foreclosed on with the builder plastic still on the carpet.

[sarawilliam]

I’m in Ohio and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quiet mediocre neighbourhoods. Then you’ve got Better, average sized homes in nicer neighbourhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.

[KimberlyO.Kitchens]

Everyone's been promoting investing as a source of passive income, but with a 70-hour workweek and limited financial knowledge, how can I stay on top of things? Every YouTube video says "BUY, BUY!" but when and how do I sell for profit at the right time?

[KevinCollins]

Tired of them propping up the property bubbles. Make housing affordable again. It's not a crisis to have too much supply to allow people to buy them cheaper. I'll buy something there if the price is right. Tired of these ridiculous $400K+ prices for houses.

[austinbar]

Mortgage rates are currently at an all time high since 2000(24 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market

[MattsMkia]

I've been watching the housing market closely, Prices have been skyrocketing for years. It's going to be tough for first-time buyers to enter the market." how can one diversify $280k reserve .

[Tonyrobs]

I predict a housing crash due to people buying homes over asking price, lacking equity if prices decline further. Foreclosure becomes likely if they can't afford the house, and selling won't yield profits. With anticipated layoffs and rising living costs, many individuals may face this situation.

[MartinHicks-dwsu]

I’ve noticed that some home builders are reporting a slowdown in new projects. With mortgage rates so high, it seems like demand is finally cooling off a bit, and it’s really starting to affect their business

[rodrain]

The DR Horton issue is related to quality manufacturing or a lack thereof. In South Carolina there are a bunch of complaints against them for poor quality builds.

[psfraser]

Florida is ground zero. the insurance prices, the hurricanes, the condo crisis, empty rentals everywhere too in these large apartment complexes, people are leaving.

[BenMaclung]

I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?

[cniht]

DR Horton homes are absolute GARBAGE. Those homes don't last 10 years without massive major repairs because their construction and materials are so cheap. Whatever home you buy from them assume the value is half what you paid for it. It should further be noted that 15 to 20 years ago the average builder had a profit margin of about 15% on a new home. For these builders that margin is now pushing or beyond 40% depending on the home.

Cheap product at an absolutely inflated price, and that's why they can 'afford' the 'buy down'. And you were highlighting the last quarter, not the Year over year, which is down only a few million in the terms of over 4.7 billion.

[lisaw]

Research shows to never buy their homes they cut corners built with cardboard and homes are falling apart.

[Noobtuber]

People cant afford these houses anymore and renters are burning through cash and need the money themselves at this point

[stephenclark]

I'm an unfortunate dr Horton homeowner. I was not able to watch the construction as I was out of state. Trash. Would never have bought it knowing then what I know now. I've watched them build houses in the neighborhood I'm now living in. Terrible construction, junk hvac, water leaks everywhere. About the only recourse we have now is to walk away and let it foreclose. At this point in my life I don't even care. I'd live on the streets rather than buy another dr Horton house. May come to that very soon.

[lawrencesmith]

You keep saying the owners are selling it at lower prices. They havent sold anything. Those discounts are what they are offering the home at. Prices will go down much lower.

[StariLes-vr]

I'm favoured, $22K every week! I can now give back to the locals in my community and also support God's work and the church. God bless America.

[afsharlady]

Obviously, Florida was oversold and overpriced, and now the insurance and condo assn. prices are making the whole state unaffordable. All markets are different. There are markets in the US that are thriving, with limited numbers of homes for sale, which keeps prices high.

[billscott]

No yard might as well be a condo. $350K? Try 150K.