NEW YORK--(BUSINESS WIRE)--Link to Fitch Ratings' Report: 2015 Outlook: U.S. Housing and Homebuilders (Expect Acceleration in Recovery)
Stronger advances in U.S. housing starts and new home sales should enable public homebuilders to report sharply higher revenues, on average, in the coming year, according to Fitch Ratings in its 2015 Outlook report for the sector. A few builders may also be in line for positive rating actions in the coming year.
Housing should benefit from a steadily expanding economy in 2015. 'As by-products of a smoothly growing economy, employment should show moderate gains and consumer confidence is expected to improve,' said Managing Director Bob Curran. 'The spring selling season will likely set the tone for the year.'
'The likelihood of higher home deliveries could position housing revenue to jump by 20%-25% next year,' said Curran. Fitch also projects home prices to rise by up to 2.7% in 2015. Another development likely to pick up more of a head of steam in 2015 surrounds land development as most companies are becoming more aggressive in sourcing raw land. Fitch anticipates land and development spending to be modestly higher next year.
Also improving the outlook for homebuilders will be foreclosures, which are expected to further decline with fewer 'underwater' mortgages. 'New home pricing will benefit from still-restrained levels of new home inventory, though home price increases should level off to the low single digits,' said Curran.
Fitch's '2015 Outlook: U.S. Housing and Homebuilders' is available at 'www.fitchratings.com' or by clicking on the above link.
Additional information is available at 'www.fitchratings.com'