In a time of decreased demand, increased inventories and a less than stable real estate market, few homebuilders are enjoying gains in stock prices. It has been a solid two years of industry losses in both stock prices and profits. The good news is that the worst might truly be over; yesterday national homebuilder Lennar Corp. enjoyed a 3.5% stock price increase. The second largest homebuilder’s stock did well after posting a less than expected quarterly loss of $86 million.
Is the increase in Lennar’s stock price an indication that consumer confidence is back or is it just a slight correction on an undervalued stock?
Only time, and home sales will tell.
Subscribe to our New Homes Blog!
I think it was a home builders stock correction. The home builders stocks will move up and down according to the latest housing news.
You’re right, most homebuilder stocks move along with current news but it’s been mostly downhill lately even with good news.
I hope it’s a sign that some confidence is coming back but it may be just a correction.
I have a feeling it’ll be a while before the homebuilder’s stocks pick up again.
Amy@Dividend Stocks´s last blog ..All About Dividend Investing: The Easy Way To Get Start