28 Mar 08 An Increase in a Homebuilder’s Stock?

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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.

Tags: consumer confidence, home builder inventory, Home Builders, homebuilder stock, lennar homes, stock prices