Bellway: Home Sales Rate Treads Water in Spring, but Shares Appeal as Housing Market Data Improves

Homebuyer demand was little changed for Bellway in spring as outlined in the no-moat homebuilder’s June 2024 trading update. Bellway’s weekly private home sales rate of 0.62 home sales per active outlet—covering the four months to June 2024—exhibited relative stability and was broadly consistent with sales activity it reported in early 2024. Still, homebuyer appetite has improved relative to the depths of the housing market downturn in 2023 with Bellway’s spring private sales rate some 7% higher than a year earlier. Bellway shares remain appealing and trade at a 25% discount to our unchanged GBX 3,750 fair value estimate.