Five interesting things that Hodges Capital research analysts discovered this week...
#1 BUILDER PRICE CUTS: Pricing pressures remained elevated in November. According to the NAHB, 41% of builders reduced prices—the highest share since the pandemic and the first time it has exceeded 40%—with an average cut of 6%, unchanged from October. Sales incentives were also widely used, with 65% of builders offering them, consistent with the prior two months. Regional builder sentiment was mixed: the Midwest declined one point, while the Northeast and West (the most expensive region) each rose two points, and the South (the largest market) increased three points. (Piper Sandler)
#2 TRADING ACTIVITY: The majority of trading activity in U.S. stocks now occurs outside traditional exchanges. The number of U.S.-listed stocks has fallen 45% since the late 1990s, while the number of publicly traded companies worldwide has increased 40% over the same period. There are currently more private equity firms than publicly traded companies in the U.S. (Nicole Chambers, Southwest Ideas Conference)
#3 CITADEL SECURITIES: Citadel Securities handles roughly 25% of all daily U.S. equity volume, including more than one-third of U.S. retail stock trades. (Barron’s)
#4 THANKSGIVING TRAVEL: More than 80 million Americans are expected to travel 50 miles or more this Thanksgiving, according to AAA—setting a new record and up 2% from last year. Nine in ten travelers will drive, while about 6 million are expected to fly and 2.5 million will use alternative transportation such as buses, trains, or boats. Air travel is projected to rise 2% year-over-year, and alternative travel is forecast to jump more than 8%. The American Bus Association reports that bus passenger volume this holiday weekend is up double digits from last year—by as much as 30% on some routes. (The Daily Upside)
#5 DALLAS HOME VALUES: As of October, an estimated 87% of homes in the Dallas metro area have seen their values decline over the past year, according to Zillow. Nationwide, estimated values declined for 53% of homes, with the broadest declines occurring in the West and South. The median U.S. home was last purchased 8.6 years ago and has appreciated 67.2% since then, based on Zillow data. In Dallas, most homes have gained more than 50% in value since their last transaction. (Dallas Morning News)
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