Boston, MA 07/08/2013 (wallstreetpr) – The housing construction and home builders market is getting a high demand for new homes despite increasing mortgage rates. This depicts a stable growth in the housing sector and the real estate market is also skimming the effect. Besides CYS Investment Corp (NYSE:CYS), another Real Estate Investment Trust (REIT) stock that earned itself an upgrade to a buy rating, is M.D.C Holdings Inc (NYSE:MDC). This company is again benefiting from the general uplift in the housing market, which is a trend rippling down from the job market boost.
It is not only experiencing a boost in the sales volume but the price level is also going up. In the housing sector, currently the demand side is showing a steep hike due to increased affordability of residential mortgages with high rentals however the supply side is still constrained with limited supply of material and labor so the pries in the sector are bound to increase.
Founded in 1972 the M.D.C Holdings Inc (NYSE:MDC) has been helping Americans build the dream homes through a fleet of subsidiary companies. Apart from homebuilding services many of its subsidiaries also offer mortgage loans, home title & escrow and home insurance products to over 170,000 customers. During May this year it also expanded geographically and ventured the south Florida market through its acquire project “The Oaks” at Boca Raton which will be featuring two storied houses of around 4,100 to 6,750 sq ft area at about 60 sites.
The upside in the housing sector was reflected in the company’s Q1-2013, results also as its EPS surpassed analyst estimates by a wide margin. The uptrend was geared by a high double digit YOY growth in new orders, current mortgage closings, margin expansions and backlogs. According to the recent results the company managed to increase the average selling price for homes by up to 10% of the last price and has been recording an intermittent double digit growth in earnings for the last 6 quarters.
