Home Sales Up 11%, Raising Sector's Roof (Updated)
(Stock prices updated at the close of market.)
WASHINGTON, DC ( TheStreet) -- There has been little talk of double-digit growth in any sector, let alone housing. But new home sales grew 11% in June, the Commerce Department said on Monday.
The news sent shares of home builders climbing. Toll Brothers (TOL) grew 1% to close at $19.29, Pulte Homes (PHM) soared 9% to $10.59, Centex (CTX) spiked 9% to end the day at $10.29, KB Home (KBH) climbed 3% to $16.75 and Lennar (LEN) shot up 7% to close at $11.87.
New homes sales reached a seasonally adjusted rate of 384,000 units from 346,000 units in May, beating analysts' forecast of a pace of 360,000 units. This was the strongest pace since November 2008.Sale prices still remained weak, however, as the median price dropped 12% to $206,200 from $234,300 last year. The rate of new homes sales was just another piece of good news and added to the belief that the housing market is turning. Last week the National Association of Realtors said existing home sales grew 3.6% in June. --Reported by Jeanine Poggi in New York.
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