Homebuilder Taylor Morrison posted record sales last month and saw that the best results were from coronavirus hot spots, CEO Cheryl Palmer told CNBC on Wednesday.
Home sales for the company nearly doubled in the month of June.
“We saw if you are thinking about the states that I think have received, you know, the most broadcasting time with the increasing number of cases is Arizona, Texas, Florida, California – this is where we see some of our strongest sales.” she said in an interview with Closing Bell. “Interestingly, we can see a decrease in pedestrian traffic, but we are seeing a huge increase in web traffic.”
Taylor Morrison, America’s fifth-largest homebuilder, showed net sales growth of 94% from a year earlier, as low home supply was met by a multitude of buyers with low mortgage rates. Based in Arizona, Taylor Morrison operates in 22 housing markets in nearly a dozen states in the southeast, southwest and west.
Taylor Morrison expanded its portfolio with the acquisition of California-based William Lyon Homes in February.
Texas on Tuesday announced a new record of 10,000 new cases of Covid-19 and continued to struggle with rising hospital admissions. Currently, the situation there reaches the level that the state of New York, which was once the epicenter in the USA, saw in early April.
In California, Arizona and Florida, there has also been a surge in incidence. The states, along with Texas, together accounted for nearly half of all new cases in the US on Tuesday.
In April, Taylor Morrison began experimenting with virtual meetings, where potential buyers can travel around the property from their couch. According to Palmer, the company has completed 8,000 online meetings over the past three months, and this is an indicator of market conditions.
“It’s interesting that they find another way to contact us, and, you know, it’s time” for the industry to introduce new technology, she explained. “I call it Covid silver lining, which really allowed our industry to catch up and make sure that we communicate with customers.”
Taylor Morrison saw a drop in new home sales in March, when a virus detected in China in December was first diagnosed in the United States. Sales in May compared with the same period last year will recover by 13%.
The company’s shares jumped almost 17% to $ 22.12 during the session on Wednesday and rose 4% in the secondary market.
Shares rose 1% from the beginning of the year and remain at around $ 6. From the highest level in February to the market crash.