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April 24, 2014

Positive Market Report Sends Housing Stocks Soaring

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Positive Market Report Sends Housing Stocks Soaring

Good news spread Thursday for home builders, home improvement companies, and mortgage lenders, as stocks ticked up after the National Association of REALTORS® released a new report showing that pending home sales in November reached their highest level in a year-and-a-half. 

Pending home sales — a gauge for the future of the market — increased 7.3 percent in November to a reading of 100.1, NAR reported in its index. (A reading of 100 is considered healthy for the real estate market.) 

Analysts are predicting that 2012 will mark a turnaround for the real estate market, after years of a drastic slowdown in activity. 

Stocks inched up on Thursday for several home builders. For example, Hovnanian Enterprises Inc., saw the biggest rise in shares following Thursday’s report, with shares increasing 9 cents, or nearly 7 percent, to trade at $1.39. Also, homebuilders D.R. Horton Inc. saw shares rise 45 cents, or 3.7 percent, to $12.65; Lennar Corp. added 77 cents, or 4.1 percent, to $19.75; and PulteGroup Inc. gained 28 cents, or 4.8 percent, to $6.24, the Associated Press reported. 

Also, mortgage companies also saw an increase to their stocks. For example, Bank of America shares increased 11 cents, or 2.1 percent, to $5.40 on Thursday while Huntington increased 16 cents, or 2.8 percent, to $5.63; and Wells Fargo shares jumped 55 cents, or 2 percent, to $27.66.

Source: “Housing Stocks Up on Pending Sales Report,” Associated Press (Dec. 29, 2011)

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