All articles tagged with #inventory levels
Automakers are offering significant discounts on electric vehicles, exceeding $10,000 in some cases, to capitalize on the nearing expiration of the $7,500 federal tax credit at the end of September, leading to a selloff and reduced EV inventory in the US.
The U.S. housing market is experiencing a shift as a shortage of buyers and economic uncertainties weaken sellers' bargaining power, leading to price reductions and longer market times, especially in markets like Texas and Florida, while some areas see increased inventory and more balanced supply and demand.
Oxford Economics predicts the U.S. housing market will continue to decline due to high mortgage rates, elevated home prices, and low inventory, with slow new construction and affordability issues persisting, but the economy is expected to avoid a recession this year.
OPEC+ nations are gradually unwinding production cuts, adding modestly to output, while global oil markets remain broadly balanced despite bearish sentiment, inventory builds, and reduced drilling activity in the US, particularly in the Permian Basin, which Goldman Sachs suggests could support higher oil prices.
The frozen housing market is starting to thaw as mortgage rates drop below 7%. The average 30-year fixed mortgage rate has fallen to 6.64%, leading to an increase in new listings and pending home sales. However, experts caution that it is still too early to determine the overall state of the housing market for 2024. While some buyers and sellers are becoming more active, others are getting cold feet due to economic uncertainty and concerns about rising home prices. The housing market is expected to continue evolving, and monitoring factors such as mortgage rates and inventory levels will be crucial in understanding the housing landscape in the coming year.
ON Semiconductor reported Q3 FY2023 results that beat analysts' expectations with flat year-on-year revenue of $2.18 billion. However, the company's revenue guidance for the next quarter fell short of estimates, coming in at $2 billion. ON Semiconductor's inventory levels have increased, with inventory days outstanding at 165, above its five-year average. The company's revenue growth has been mediocre over the past three years, and this quarter saw a decline of 0.54% year-on-year. Despite the mixed results, ON Semiconductor has a strong financial position and resources to pursue growth opportunities.
Existing-home sales in the US dropped 15% in September on a year-over-year basis, reaching the lowest figure in 13 years, as surging mortgage rates, low inventory levels, and rising home prices continue to hamper the housing market. The decline in housing transactions is attributed to limited inventory, low affordability, and resistance from current homeowners to sell due to fear of losing their lower interest rates. The situation is reminiscent of the 1980s housing market, with millennials facing a frozen and unaffordable market with rising interest rates, similar to their boomer parents. Experts predict that home prices will continue to rise at a slow pace, exacerbating affordability constraints.
KB Home CEO Jeffrey Mezger believes that the U.S. housing market has hit bottom and is optimistic about the sales rebound. Despite rising mortgage rates and deteriorating affordability, Mezger attributes the strong demand to a lack of inventory in both new and existing homes, coupled with strong demographic demand from millennials and Gen Zs. KB Home has reduced house prices by around 9-10% and expects to reach its 2022 price peak again in 2024. However, if inventory levels start to increase rapidly, it could signal a need to stop raising prices and focus on selling homes.
Nike's stock is experiencing its longest losing streak since its IPO in 1980, falling for a ninth straight session and wiping out nearly $13 billion in market value. Concerns over China's slow consumer recovery and elevated merchandise stockpiles in the activewear industry are weighing on profitability. China's retail sales growth has decelerated, indicating a soft consumer rebound. Analysts attribute the slump to investor realization that China's growth will be slower and that the country will not do as much to boost growth as it has in the past. Nike's recent earnings report fell short of expectations, signaling the need to sell off excess inventory with discounts. The negative impact of high inventory levels and promotions on margins is a concern for investors. Foot Locker's upcoming earnings report will be an important signal for Nike, as the retailer purchases a significant portion of its athletic merchandise from Nike.
Only seven out of the nation's 200 largest housing markets have returned to pre-pandemic inventory levels, as the surge in housing demand during the pandemic has not been matched by an increase in housing supply. The scarcity of "forced sellers" and the reluctance of move-up buyers to sell their homes due to higher mortgage rates have contributed to the low occurrence of foreclosures and a decline in new listings. The housing market's seller strike and the dearth of new listings pose challenges for the overall inventory count.
High sticker prices and interest rates are causing many consumers to hold off on buying cars, despite some stabilization in prices. Data shows that people are keeping their vehicles for longer periods and delaying purchases due to financial concerns. While car sales are recovering, concerns about affordability persist. However, dealers are still looking to boost their inventory, making trade-in values high. Experts suggest considering repairs instead of purchasing a new vehicle, exploring used cars or different vehicle types to lower costs, and taking advantage of low APR offers. Car prices may soften in the coming months as inventory levels increase, but pre-pandemic prices are unlikely to return soon.
Walmart has sold its menswear brand Bonobos at a significant loss due to unwanted inventory levels, according to an investment strategist. Retailers are struggling with excess inventory as consumer demand shifts during the pandemic.
Sales of previously owned homes in the US rose 14.5% in February compared to January, the largest increase since July 2020, according to the National Association of Realtors. The median price of an existing home sold in February was $363,000, a 0.2% decline from February 2022, marking the first time in 131 months that prices were lower on a year-over-year comparison. However, inventory levels remain at historic lows, with just 980,000 homes for sale at the end of February, representing a 2.6-month supply. Higher mortgage rates have been cooling home prices since last summer, but with rates now higher than they were in January, it will be harder for some buyers to compete.
Sales of previously owned homes rose 14.5% in February compared to January, the largest increase since July 2020, as mortgage rates fell sharply. The median price of an existing home sold in February was $363,000, a 0.2% decline from February 2022, marking the first time in nearly 11 years that prices were lower on a year-over-year comparison. However, inventory levels remain at historic lows, with just 980,000 homes for sale at the end of February, representing a 2.6-month supply. Multiple offers are returning on a good number of properties, which could heat prices again.