Seeking Alpha

Homebuilders welcome more good Q4 results

  • Another pair of big Q4 results from the homebuilders - today Pulte and Ryland - has the entire sector on the move. ITB +1.5%, XHB +1.1%.
  • Yes, mortgage rates put a crimp in sales, but higher prices more than made up for the difference, and D.R. Horton management suggests the sales pace has picked back up in January. Pulte reported new orders off 18% from a year ago, but the value of orders barely fell. Closings in Q4 were down 4% from 2012, but revenues gained 9%.
  • Taylor Morrison (TMHC +0.2%), M.D.C. Holdings (MDC +1.2%), Standard Pacific (SPF +1.4%), KB Home (KBH +3.3%), Hovanian (HOV +0.8%), Toll Brothers (TOL +0.9%)
From other sites
Comments (4)
  • june1234
    , contributor
    Comments (3265) | Send Message
     
    Pulte reported new orders off 18% from a year ago
    30 Jan 2014, 10:33 AM Reply Like
  • june1234
    , contributor
    Comments (3265) | Send Message
     
    Pulte reported new orders off 18% from a year ago.
    30 Jan 2014, 10:34 AM Reply Like
  • convoluted
    , contributor
    Comments (2243) | Send Message
     
    According to my trading platform ITB is down. I have a standing order to short, but it hasn't retraced the price target.
    However, I do believe that there is a renewed interest among renters to buy a house, but many are unable to compete with the hedge funds and/or qualify for a mortgage. It's interesting that the desire to own-even among some younger folks- has gathered some traction. But, is this just a shadow of what used to be? In some sense, we seem to be entering a de facto feudal system, with younger people working shorter hours (so employers can avoid health insurance issues), for low wages, with a choice of housing that's limited. Certainly that's not the situation for all, but the evidence seems to increasingly reflect a sustained divergence from 'the way we were.'
    30 Jan 2014, 11:29 AM Reply Like
  • Charles A. Smith
    , contributor
    Comments (1164) | Send Message
     
    Both ITB and XHB set their highs near the open, and have been fading since.
    30 Jan 2014, 03:48 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs