The coronavirus pandemic wasn't as harmful to US housing as expected given that the industry exceeded expectations for this year's second quarter but it won't fare as well in the remainder of the year and into 2021.
Fitch Ratings Inc. has revised up its projections for most rated homebuilders and building product issuers, increasing the forecast for these companies' revenues and EBITDA, or estimates for earnings before interest, taxes, depreciation, and amortization. Still, the credit rating agency added it was cautious in its upward revisions basing them mainly on the stronger than expected second-quarter results.
"We forecast housing activity and home improvement spending will weaken during second-half 2020 and into 2021," Fitch reported.
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Lidia Dinkova
Lidia Dinkova covers South Florida real estate for the Daily Business Review. Contact her at [email protected] or 305-347-6665. On Twitter @LidiaDinkova.
