I don’t remember what that puts the total number of selling communities at, but it’s 8 more than it was 3 weeks ago, and that seems like that should bode well for the rest of this year!
I would assume they have to acquire the land upfront. Wonder if that was inventory that was already on the books last Quarter or is this something that will show up on the balance sheet this quarter?
I’m not sure what the timeline is between “acquire land” → “open a community” → “1st sale”
I live in the Seattle area. Just for fun I looked up real estate listings in the new Olympia community near Munn Lake. LGI homes are priced competitively, but not bargain prices, though when you throw in closing costs, builder upgrades and the fact that they’re new homes rather than resale, the pricing is pretty strong. As usual for LGIH, the location is a bit remote. If you bought one of these and work in Seattle you’ve got a very long daily commute no matter what mode of transportation you use.
LGI Homes has opened eight new communities in September: two in each of Seattle and Albuquerque and one each in Minneapolis, Houston, Winston-Salem and Dallas. I am not sure how many they have sold out.
Two or three more market-open days until August sales are announced. But LGIH shares up strong (4%?) this week. I am not inclined to add a trading position, but if closings are strong in the face of two hurricanes, there could be continued move upwards. The current price is $47.86, so just about midpoint between the $45 and $50 options. Not interested in puts or calls, either.
KC, long LGIH, largest position (IRA up .86% on the day despite 20% (blush) cash)
Seattle is renowned for some of the worst traffic in the US. There’s just not any room to expand the main traffic corridors and the public transit options have not been able to keep up with the growth in population.