This Day On The Street
Continue to site
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

Sector Snap: Homebuilders

LOS ANGELES (AP) â¿¿ Shares of U.S. homebuilders retreated Wednesday, weighed down by a report showing sales of new homes dipped slightly in August from the previous month.

Several of the stocks remain up by more than twofold so far this year, however, reflecting steady gains as demand for new homes has improved overall this year.

The Commerce Department reported that new-home sales edged down last month to a seasonally adjusted annual rate of 373,000. That amounts to dip of 0.3 percent from July's revised rate of 374,000.

Sales in August were up 27.7 percent from the pace a year earlier. Even with that gain, new-home sales remain well below the annual pace of 700,000 that economists consider healthy.

While sales slowed, the median price of a new home jumped 11.2 percent last month to $256,900 â¿¿ the biggest one-month gain on record.

In a research note Wednesday, Citigroup analyst Will Randow said he expects August's new home sales figures will be revised slightly higher next month, noting that figures are typically adjusted higher during periods when sales are increasing.

In addition, several major homebuilders have recently reported strong new home orders trends, which suggests improved sales of new homes in coming months. Some economists forecast new home sales will continue to increase next year as the housing recovery gains momentum.

Home sales have been bolstered by the lowest mortgage rates on record. Prices are also rising because of a decline in foreclosures and sales of other deeply discounted homes.

Still, high unemployment and an uncertain economy remain hurdles for many would-be homebuyers. And many who have stable jobs are unable to qualify for a mortgage or can't afford larger down payments.

M/I Homes Inc. led the sector decline, falling $1.33, or 6.3 percent, to $19.72 in afternoon trading.

D.R. Horton Inc. slipped 57 cents, or 2.6 percent, to $21.17; Lennar Corp. fell $1.25, or 3.5 percent, to $35.01; KB Home dipped 50 cents, or 3.5 percent, to $13.91; Toll Brothers Inc. wad down 97 cents, or 2.7 percent, to $34.52; Beazer Homes USA Inc. fell 12 cents, or 3.3 percent, to $3.52; and, Hovnanian Enterprises Inc. slipped 13 cents, or 3.4 percent, to $3.50.

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
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,090.52 -72.47 -0.40%
S&P 500 2,114.17 -9.31 -0.44%
NASDAQ 5,088.1410 -18.4520 -0.36%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs