This Day On The Street
Continue to site
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

Homebuilders Stock Winners and Losers

NEW YORK, N.Y. ( TheStreet) -- Stocks in the homebuilding sector were mostly lower Tuesday afternoon despite a better-than-expected reading from the Standard & Poor's/Case-Shiller 20-city index of home prices.

The index rose 4.6% in May year-over-year, stronger than the 3.9% rise economists had expected. A federal tax credit for homebuyers of up to $8,000 is largely credited with strengthening home sales this past spring as buyers rushed to push up their purchases before the credits expired April 30.

The SPDR S&P Homebuilders (XHB), an exchange-traded fund that tracks the homebuilder sector, rose in morning trading only to reverse, losing 3.1% in late-afternoon activity. Shares of NVR (NVR - Get Report) and Lennar (LEN - Get Report), among the XHB's top holdings, bid down 1.7% and 2.6%, respectively. Fellow builders D.R. Horton (DHI - Get Report) and PulteGroup (PHM - Get Report) were down 0.9% and 1.5%, respectively.

A few select small-cap homebuilders managed to eke out share-price gains Tuesday. Standard Pacific (SPF) gained 3.8%, Brookfield Homes (BHS) 1.7% and Comstock Homebuilding (CHCI) 1.7%.

The month of May is historically a strong month for home selling, regardless, as families looking to move get ready to do so in the summer months while their kids are out of school on summer vacations. Recent economic reports showed the housing market has a long way to go toward sustainable recovery, and many economists feel May's uptick in home prices will not continue through 2010.

"I bet in six months, 15 to 20 cities will have falling prices," said IHS Global Insight economist Patrick Newport, who expects home prices to fall between 6% and 8% before rebounding in 2011.

>>Search for Highest Dividends by Rate or Yield

Home prices rose 1.3% from April to May, according to the report released Tuesday morning, with 19 of the 20 major metropolitan cities measured reporting price increases. Las Vegas was the sole city to record lower prices in May; Minneapolis and Atlanta had the strongest month-over-month price growth.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
XHB $33.88 -2.80%
DHI $30.36 -3.60%
LEN $45.79 -4.00%
NVR $1,661.61 -2.00%
PHM $18.52 -3.40%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs