Housing Stocks Tank on Disappointing New-Home Sales
That's a bummer.
JPMorgan reported Wednesday morning that new single-family home sales fell in June. In total, the sales fell 5.3%, which was disappointing when compared to strong May numbers.
Home companies, such as Beazer Homes USA Inc. (BZH) - Get Beazer Homes USA Inc. Report plummeted on the news. In afternoon trading, Beazer was down nearly 10%.
KB Home (KBH) - Get KB Home Report also fell on the news. The stock dropped 5%.
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Toll Brothers Inc. (TOL) - Get Toll Brothers Inc. Report , a home construction company, was down 5%, as was PulteGroup Inc. (PHM) - Get PulteGroup Inc. Report .
"Price data in the new home sales report also have looked weak lately, with the median sale price down 4.2% [over a year ago] in June," said JPMorgan in its note.
JPMorgan expects "real residential investment will be basically flat in Q2...but our tracking of real GDP growth for the quarter remains at 4.4% [seasonally adjusted annual rate] after rounding," it continued.
"June's sale pace disappointed expectations," the note stated.
