Sunday, April 25, 2010
Homebuilder stock prices sky rocket
After the increase in new home sales, many homebuilder stocks took off. Hovnanian Enterprises had an increase of 10% by midday and Pulte Group and Lennar Group both closed with five percent increase. This huge rally came after home sales increased 26.9% in Feb.
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I hope this jump sustains itself, but as the article said, popular tax credits will expire soon. Also, the growth isn't nation-wide. California saw some of the grimmest numbers in terms of homes, but the West and Midwest saw single-percentage growth (6 and 4% respectively). The fact that growth is so uneven concerns me.
ReplyDeleteCurrently I believe any growth is great news for the housing sector. I mean it is impossible to expect them to be growing or matching where they were before the crisis. We can only hope that it will spread to more regions.
ReplyDeleteI hope the Homebuilding is a positive sign in the housing sector in the U.S. Caterpillar, a large construction company, posted their 2010 Q1 earnings this morning, their stock is up 5 percent. I see this as signs of an upswing in homebuilding as well.
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