Sunday, August 02, 2009

U.S. Home Construction Stocks Rebound


The chart above (click to enlarge) shows returns over the last six months for the iShares Dow Jones US Home Construction Index (ITB) vs. the Dow Jones Industrial Average (source). Compared to the overall market return (DJIA) of about 15% over the last six months, the Dow Jones US Home Construction ETF (holdings include Pulte Homes, Toll Brothers, KB Home and other home builder companies) is up by 40%. Home construction stocks are showing positive signs of recovery, with returns over the last six months more than twice the overall market return.

2 Comments:

At 8/03/2009 8:30 AM, Blogger 1 said...

Hmmm, one wonders how long that will last though good news for any length of time is alway welcome...

Note the following from the Real Estate blog dated June 27th: The Waxman-Markey Cap and Trade Bill Will Control Housing Standards

'The new legislation that passed through the House last night, unread by any of the Congress people, had inserted into the bill a new NATIONAL BUILDING CODE. You heard me right, there is language that would have a national building code override your local and state codes'...

Hmmm, considering all the other smashing successes of federal programs, if the above is true I'd hate be a home contractor/subcontractor let alone a new home buyer...

 
At 8/03/2009 10:26 PM, Anonymous Anonymous said...

KB Homes is being sued in at least three states for hundreds of millions of dollars.

The ratio of new home sales to existing home sales is near a record low. When foreclosures rise again later this year, that ratio will plummet.

 

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