Seeking Alpha

Homebuilders lower after Hovnanian results

  • A check of the homebuilders following Hovnanian's big earnings miss and slowdown in closings (HOV now down 6.6%): NVR (NVR -1.5%), D.R. Horton (DHI -1.1%), KB Home (KBH -1.8%), Pulte (PHM -0.8%), Ryland (RYL -1.5%), Toll Bros. (TOL -0.3%), Lennar (LEN -1%).
  • So what's the SPDR Homebuilders ETF (XHB +0.1%) doing in the green? The ETF has a heavy weighting to those tangential to the homebuilding industry - retail home improvement, building suppliers. More of a pure-play homebuilder fund is the iShares U.S. Home Construction ETF (ITB -0.8%).
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Comments (5)
  • Momintn
    , contributor
    Comments (4800) | Send Message
     
    It's too bad people can't distinguish between the stocks.
    5 Mar 2014, 11:55 AM Reply Like
  • june1234
    , contributor
    Comments (3195) | Send Message
     
    Consistent with a 17% yr over yr decline in mtg apps and the 30%+ cancelation rate DHR just reported
    5 Mar 2014, 12:18 PM Reply Like
  • The Last Boomer
    , contributor
    Comments (992) | Send Message
     
    This is from Tom Lawler:
    "Hovnanian’s net orders in California plunged by 43.4% compared to a year ago. Hovnanian’s average net order price in California last quarter was $653,366, up 46.8% from a year ago and up 83.2% from two years ago.
    Read more at http://bit.ly/1gRFWGs."
    The prices have almost doubled and the sales take a dive, of course. This is not 2006 all over again. People are not idiots chasing house prices up in the stratosphere. The combination of sharp price increases and mortgage rate increases is having the expected negative impact on sales.
    5 Mar 2014, 12:22 PM Reply Like
  • buffett222
    , contributor
    Comments (1125) | Send Message
     
    Nice. HOV down 11% now.
    5 Mar 2014, 03:29 PM Reply Like
  • Kimer62
    , contributor
    Comments (253) | Send Message
     
    Great time to buy NVR, DHI, and PHM on the dip. averaging in the neighborhood of 900,000 housing starts on our way to 1.6 the historical average, creates pretty good odds that good companies will be successful in this market! Long ITB!
    5 Mar 2014, 03:30 PM Reply Like
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