Despite falling house prices, is now the perfect time to invest in housebuilding stocks?

first_img Enter Your Email Address “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. House prices are forecast to fall up to 5% in 2020 as the housing market is affected by economic uncertainty. At the time we went into total lockdown, the share price of the FTSE 100’s big four housebuilders – Persimmon (LSE:PSN), Barratt Developments (LSE:BDEV), Taylor Wimpey (LSE:TW) and Berkeley Group (LSE:BKG) – had already fallen at least 43% from their year highs. However, I believe the long-term outlook for this sector remains positive, and now could be the perfect time to invest.Short-term gloomIt is easy to understand why house prices are forecast to fall this year.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Supply of credit: The banks have tightened their lending criteria due to economic uncertainty, with nearly 50% fewer mortgage products available now than there were before lockdown. In particular, the number of lenders willing to offer 90% loan-to-value mortgages, essential for first time buyers, has shrunk dramatically.Supply of houses: All the big four housebuilders stopped working for a period during total lockdown. In the period since, they are working on much reduced outputs as they comply with social distancing working restrictions and supply chain difficulties. Therefore, there will be less houses ready to sell this year.Long-term outlookDespite the short-term pressure on house prices, there is plenty to be optimistic about.There is a national housing shortage and, to help alleviate this, the government is targeting 300,000 new houses per year by the middle of the decade. To assist, it continues to bankroll the Help to Buy scheme for first-time buyers and, where appropriate, relax planning constraints to facilitate new developments.Interest rates remain at historic lows, making borrowing cheap and affordable. Since estate agents re-opened in May, new enquiries have been better than expected, with people wanting more space to accommodate home working.Cash is kingThe short-term fall in the value of the big four housebuilders is contrary to their strong balance sheets.Last year, they each had revenues in excess of £2.9bn and operating profits of at least 19%. However, it is their retained earnings (cash) of at least £600m that convinces me that they can still take advantage of the long-term opportunities in the sector once the storm passes.Prior to the coronavirus outbreak, housebuilders were among the most generous dividend payers on the FTSE 100. Berkeley Group is now the only one of the big four that continues to make dividend payments. It is easy to understand why, as it has retained cash of £1bn and made 26% operating profit last year. It currently trades 23% off its year high and it is top of my watchlist in the housebuilding sector.In summary, long-term demand, low interest rates, government support and excellent balance sheets all suggest an excellent long-term outlook for the big four housebuilders. I think demand for new houses will remain constant despite economic uncertainty, and house prices will stabilise. I believe the current share prices are currently too low and think now could be the perfect time to invest. Simply click below to discover how you can take advantage of this. See all posts by Ben Race Ben Race | Friday, 19th June, 2020 | More on: BDEV BKG PSN TW Ben Race has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Our 6 ‘Best Buys Now’ Shares Image source: Getty Images Despite falling house prices, is now the perfect time to invest in housebuilding stocks? I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. 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ND juniors launch mask company celebrating residence halls on campus

first_imgThe beginning of the 2020-2021 academic year brought a slew of changes from a mixture of online and in-person classes to exclusively outdoor dining. One of the most noticeable changes is the mask requirement for all students in all campus buildings and outside where physical distancing is not possible.Each student was given at least three cloth masks to wear, but students were welcome to use other face coverings that they had or bought. At least for this semester, masks are a new reality –– one that two students wanted to ingrain with Notre Dame traditions.The L+H Mask Company began when juniors Jay Lokhorst and Ryan Hembree, both residents of Stanford Hall, saw a unique way to show dorm spirit. Their website to sell masks was launched July 21 after Hembree and Lokhorst put in a few weeks of work from concept to design to launch. The pair designed masks for all 32 undergraduate residence halls.“It started off that I wanted to make one for Stanford just for the guys living in Stanford, and then we just thought to make these for all the dorms because obviously wearing masks are very important right now, so we want to make sure that people have masks that they would enjoy wearing,” Lokhorst said in a phone interview.Hembree said he hopes the masks encourage students in the community to take precautions seriously.“Just the idea of the company was always just to give people an opportunity to make safety fun, in a sense, because it is a top priority,” Hembree said in a phone interview. “I really want to be able to stay here, but also stay here safely.”Each mask costs $10, and $1 of each sale will go to Catholic Charities Fort Wayne/South Bend COVID Relief. So far, Lokhorst and Hembree said they have sold roughly 250 masks.Lokorst said they plan to continue to sell as long as masks need to be worn on campus.“We’re kind of hoping that you know people will see other people wearing them and be like, ‘Oh, where did you get that?’ and that could help us out a lot,” Lokhorst said. “And I mean it has been fun, so hopefully they’ll keep selling.”Since the masks are custom-made for each dorm, each mask is made when it is ordered. The pair has a provider that creates the mask with the corresponding dorm design and then ships the product to the seller.Lokhorst, a business analytics major with a minor in innovation and entrepreneurship, saw creating the company as a learning experience, as well as a way to give back to the Notre Dame community. One of the challenging aspects, he said, was finding an avenue to sell the masks once they came up with the concept.“I did a lot of research about [selling online] and we found that Shopify is a great way to start an easy online business, but figuring out the best way for us to do it so it would be the most efficient was difficult,” Lokhorst said.Hembree, an economics major, said figuring out some of the legal ramifications surrounding the company was difficult.“A big challenge was just getting around like not violating any kind of copyrights so that we wouldn’t get immediately taken down,” Hembree said.Despite the challenges, Hembree said the entire experience has been both informative and rewarding.“Just the whole process of going from an idea to a product was, I think, a really awesome experience to kind of see the amount of work and the amount of stuff that goes on behind the scenes before you make your first sales,” Hembree said.Tags: business analytics, economics, L+H masks, residential halls, shopifylast_img read more