This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Data Sends Homebuilders Through Roof (Updated)

Stocks in this article: TOL

(Stock prices updated.)

WASHINGTON ( TheStreet) -- The housing market received two pieces of good news on Wednesday: median home prices grew in the second quarter and luxury home builder Toll Brothers (TOL) saw an increase in signed contracts.

The news sent shares of homebuilders rallying in morning trading.

The National Association of Realtors said median U.S. home prices grew 4% in the second quarter to $174,100, and were up in 26 of the 155 metropolitan areas the group tracks.

But the median sale price was still 16% below last year's levels, and down in 129 of the metropolitan areas compared with last year.

Total sales rose to 4.76 million from 4.58 million, but were still about 3% below last year.

Separately, Toll Brothers said homebuyers who have signed contracts in the third quarter grew by 3%, its first year-over-year increase in four years.

Signed contracts soared 44% compared with the second quarter and only 9% of buyers backed out, the lowest cancellation rate in three years.

The company said it sold 792 homes, resulting in $461.3 million in revenue. Nonetheless, revenue was still down 42% due to declining home prices and fewer communities around the country.

"Although some of our markets are still stuck in the mud, many are improving," CEO Robert Toll said in a statement.

The company will release its final quarterly results on Aug. 27.

Shares of Toll Brothers jumped 14% to close at $23.42, Pulte Homes (PHM) jumped 4% to $12.86, Centex (CTX) grew 5% to end at $12.56, KB Home (KBH) increased 3% to $18.28 and Lennar (LEN) rose 4% to $13.52. -- Reported by Jeanine Poggi in New York.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs