These Home Building Stocks are Up Big in a Down Market
Bargain priced foreclosures have contributed to a very sluggish US housing market (NYSE:IYR) and cut throat competition for home builders (NYSE:XHB). Unfortunately, consumers expect the values of their houses to continue falling in the short term — and builder confidence is following.
According to the latest data from the National Association of Home Builders, the Wells Fargo Housing Market Index declined one notch to 16 during April. Moreover, the index component which measures the expectations for next 6 months dropped three points to 23 in April. That’s horrible news for the best time of year to build a house.
Despite disappointing indicators, today investors were still optimistic about several housing stocks. D.R. Horton Inc (NYSE:DHI) was up 1.2 percent to $11.67 while Toll Brothers Inc (NYSE:TOL) gained 2.29 percent to $20.58.
M.D.C. Holdings Inc (NYSE:MDC) jumped 1.41 percent to $27.26, The Ryland Group Inc (NYSE:RYL) gained 2.36 percent to $16.91, and Pulte Group Inc (NYSE:PHM) was up 0.26 percent to $7.84. Investors seem to have a lot more confidence than home builders.