Homebuilder stocks are moving away from trading on the macro news and beginning to trade more on...

Homebuilder stocks are moving away from trading on the macro news and beginning to trade more on company-specific fundamentals, according to Wells Fargo. While most homebuilder shares have outperformed the S&P 500 over the last twelve months, different patterns are starting to emerge. Performance within the sector is beginning to fragment. Over the last week for example, half of the builders the firm follows outperformed while half underperformed. Similarly over the last month, only 5 of the 12 outperformed.
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Comments (7)
  • J 457
    , contributor
    Comments (1000) | Send Message
    That's because you'd have to be a complete lunatic moron to even think of owning RYL at $41 or MTH at $45. If you must own a builder, buy a more diversified major like LEN or TOL or PHM.
    15 Mar 2013, 04:41 PM Reply Like
  • bgold1955
    , contributor
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    It would be interesting if there was a breakdown by price and number of what type of new homes are selling. Existing home sales data are available. Anyone know of such a list for new home sales?
    15 Mar 2013, 05:00 PM Reply Like
  • J 457
    , contributor
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    Yes, there are several such services which report upon such new home sales data each week. Example Ryness in Ca breaks it down regionally, week over week, year over year, and by new home builder. Or NAR. Or metrolist has some search criteria.
    15 Mar 2013, 05:42 PM Reply Like
  • EZRelo
    , contributor
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    As of the 3rd quarter of last year the percent of new homes over $300 K was around 35%. Less than 10% were under $150K. In January of 09 the % over $300K was around 20%. I don't have more recent stats although I am sure they are out there.
    16 Mar 2013, 12:11 PM Reply Like
  • afr001
    , contributor
    Comments (3) | Send Message
    All public builders are gaining market share from smaller private builders. As a result their sales are growing at a faster rate than the growth of existing home sales. This is true among all categories.. Starter homes, 2nd home buyers and luxury homes. No wonder all builders are benefiting from this trend. Watch out when regional banks begin to fund private builders later this year or 2014.
    16 Mar 2013, 12:09 PM Reply Like
  • danstvguy
    , contributor
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    Land costs will severely limit smaller private builders for years.
    16 Mar 2013, 12:15 PM Reply Like
  • LittleGeneral
    , contributor
    Comment (1) | Send Message
    Do you think , Mr. Author, that we might like to know who was in each performing category?
    16 Mar 2013, 12:18 PM Reply Like
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