Sunday, April 25, 2010

Homebuilder stocks on fire

It is reported that, after the government reported a surge in new home sales, the shares of major U.S. homebuilders recovered on Friday, and this optimistic trend has even spread to a broader market.

It is said that this optimistic trend is resulted from a recent spate of upbeat corporate performance and Greece’s decision to accept an emergency financial aid package form other European countries and IMF, which rebuilds the confidence of investors. As a result, according to the Census Bureau, the sales of new homes in March reached 26.9% from February sales which were the strongest since last July, and the percentage gain was the biggest month-over-month gain in 47 years. However, on the other hand, despite the current surge in new home sales, many analysts warned that sales could still suffer after a popular homebuyer tax credit expires this month. Therefore, as many experts suggested, over all, the outlook for the housing sector is mixed and, to a certain degree, unpredicted.

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