Seeking Alpha

iShares U.S. Home Construction ETF (ITB)

  • Aug. 25, 2014, 10:10 AM
    • July new home sales at a seasonally-adjusted annualized rate of 412K were 2.4% lower than the revised June number of 422K, and 12.3% above the year ago's 367K. July's pace is the slowest in four months.
    • Sharp eyes might be able to detect a slight downtick in the homebuilder ETFs, ITB and XHB, but both remain higher by about 0.35% on the session.
    • Full report
    | 1 Comment
  • Aug. 19, 2014, 8:38 AM
    • Housing starts in July of 1.093M were 15.7% above the revised June estimate of 945K and 21.7 above the year-ago level. Single-family starts of 656K were 8.3% above June's revised level of 606K.
    • Building permits of 1.052M were up 8.1% M/M and 7.7% Y/Y. Single-family permits of 640K gained 0.9% from June.
    • Full report
    • The homebuilder ETFs are on the move, with ITB +1.3% and XHB +1.6%  premarket.
    | 1 Comment
  • Aug. 18, 2014, 4:07 PM
    • In its August forecast, Fannie Mae expects 2014 construction starts to hit 642K, down about 8% from the July prognostication. The outlook for single-family home sales is cut 11% to 431K.
    • 2015 bounce? Not so fast, says Fannie's chief economist Doug Duncan. While 2015 will be stronger than 2013 and 2014, it won't be the "breakout year" some are expecting.
    • Previously: Homebuilder confidence at highest since January
    • ETFs: XHB, ITB, PKB
    | Comment!
  • Aug. 18, 2014, 10:14 AM
    • "Builders are seeing a noticeable increase in the number of serious buyers entering the market,” says NAHB Chairman Kevin Kelly, after his firm's Housing Market Index rises to 55 this month. Challenges still remain, he adds, noting tight credit, and shortages of finished lots and labor.
    • The HMI's three sub-components all rose in August, with the current sales conditions and expectations for future sales gauges each ahead by two points to 58 and 65, respectively. The gauge of traffic for prospective buyers added three points to 42.
    • ITB +1.8%, XHB +1.6%
  • Jul. 24, 2014, 10:09 AM
    • The ITB is lower by 1.5% and the XHB by 0.7% with earlier earnings misses from Pulte (PHM -1.5%) and D.R. Horton (DHI -5%). and just-released disappointing new home sales data weighing. Also reporting this morning was M/I Homes (MHO -3.2%), and that company beat estimates.
    • June single-family new home sales of 406K fell 8.1% from May's rate of 442K (which was revised down from 504K). Expectations for June sales were 479K.
    • The supply of new homes rises to 5.8 months at June's sales pace from 5.2 months previously.
    • Other names: Lennar (LEN -1.6%), Ryland (RYL -2.3%), Standard Pacific (SPF -2%), Hovnanian (HOV -0.9%), Toll Brothers (TOL -2.2%).
  • Jun. 30, 2014, 10:12 AM
    • May's NAR Pending Home Sales Index of 103.9 is up 6.1% from April. but 5.2% below the level of a year ago. The 6.1% sequential increase is the fastest gain since April 2010 when it jumped 9.6% ahead of the expiration of a tax credit program.
    • The NAR's Larry Yun expects a quickening pace of sales in H2, but not enough to offset the sluggish first half of the year, with affordability and access to credit remaining key issues.
    • ITB +0.9%, XHB +0.8%
    • Full report
  • Jun. 24, 2014, 3:32 PM
    • iShares U.S. Home Construction ETF (ITB) announces quarterly distribution of $0.0198.
    • 30-Day SEC yield of 0.21% (as on 05/31/2014).
    • Payable June 30; for shareholders of record June 26; ex-Div. June 24.
    | Comment!
  • Jun. 24, 2014, 10:09 AM
    • May's adjusted annual pace of 504K new home sales is the fastest print in six years. The number is 18.6% above April's pace and 16.9% higher than a year ago. The supply of new homes on the market at the current sales pace dropped to 4.5 months worth from 5.3 months in April.
    • Sales in the Northeast jumped to 34K from 22K in April, and those in the West to 130K from 97K.
    • Full report
    • Homebuilder ETFs: ITB +1.2%, XHB +0.7%.
    • Toll Bros. (TOL +1.2%), Lennar (LEN +1.4%), D.R. Horton (DHI +1.7%), KB Home (KBH +1.7%), Hovnanian (HOV +1.3%), PulteGroup (PHM +1.3%)
    • Previously: New home sales soar past estimates
  • Jun. 23, 2014, 10:13 AM
    • Homebuilders (ITB +1%), (XHB +0.7%) are on the rise early after existing home sales rise 4.9% to a seasonally-adjusted rate of 4.89M in May, ahead of expectations for 4.75M.
    • The 4.9% monthly gain was the fastest rise since August 2011, but the 4.89M pace is 5% lower than a year ago.
    • The NAR's Larry Yun notes slower price growth thanks to rising inventory along with a downtick in mortgage rates as boosting business.
    • Total housing inventory of 2.28M homes for sale is a 5.6 month supply at the current sales pace, down from 5.7 months in April, but 6% higher than a year ago.
    • The median home price of $213.4K is 5.1% higher than a year ago. Distressed home sales of 11% falls from 18%.
    • The percent of first-time homebuyers continues to disappoint, down to 27% in May from 29% in April and 29% a year before that.
    • Full report
  • Jun. 20, 2014, 10:38 AM
    • The averages are nudging higher, but not the homebuilder names after Owens Corning cuts 2014 guidance on continued weakness in its roofing business.
    • Soft action in Q1 continued through April and May, says the company, which now sees H1 roofing volumes as much as 20% lower than 2013. Owens still expects H2 to be better, but is less confident of that forecast today than it was a few months ago.
    • ETFs: ITB -1.3%, XHB -1.2%
    • Toll Bros. (TOL -1.6%),  TriPointe Homes (TPH -1.3%), Lennar (LEN -1.6%), Ryland (RYL -1.8%), Hovnanian (HOV -0.9%), PulteGroup (PHM -1.2%), D.R. Horton (DHI -0.8%), Standard Pacific (SPF -1.8%)
  • Jun. 17, 2014, 9:44 AM
    • Hit particularly hard in early action are the homebuilders after May housing starts missed expectations, but a fast CPI print has interest rates higher.
    • Previously: Treasury prices slip after fast CPI report
    • ETFs: ITB -1.1%, XHB -0.7%
    • D.R. Horton (DHI -2.3%), KB Home (KBH -1.3%), Ryland (RYL -1.1%), Toll Brothers (TOL -1.2%), Lennar (LEN -0.7%), Hovnanian (HOV -0.7%)
    | 1 Comment
  • Jun. 10, 2014, 5:09 PM
    • One of the more remarkable charts in his slide deck, says Jeff Gundlach in a presentation titled "Penny For Your Thoughts, is a graph (slide 36) of the homebuilding stocks vs. the price of lumber. The homebuilders are hanging in there even as the lumber tumbles sharply.
    • While making it clear, he's not expecting any sort of housing collapse, Gundlach expects home prices to stop going up and the demand for homes to be quite a bit less than what many are expecting.
    • Webcast
    • ETFs: XHB, ITB, PKB
    | Comment!
  • Jun. 9, 2014, 12:58 PM
    • Those who say it is a good time to sell a house increased to 43%, a new all-time high, says Fannie Mae (FNMA -0.4%) in its May National Housing Survey. Those who say it's a good time to buy dipped a bit to 68%.
    • "Consumers’ lukewarm income expectations and reticence about the economy seem to be holding back housing demand," says Fannie chief economist Doug Duncan. "This year’s spring and summer home buying season has gotten off to a slow start, even as mortgage rates have trended lower over the past two months ... The rebound in home sales will likely be too modest to pull sales for all of 2014 ahead of last year."
    • Speaking to Duncan's remarks: Those who say their household income is significantly higher than a year ago fell four points to 21%.
    • Homebuilder ETFs: XHB, ITB, PKB
  • May. 29, 2014, 10:09 AM
    • The Spring housing bounce hasn't quite arrived as Pending Home Sales only edged higher in April, the 0.4% gain falling short of estimates of 1%. On a Y/Y basis, the Pending Home Sales Index of 97.8 is lower by 9.2%.
    • Up nicely in opening action, the ITB gives back some of those gains, now ahead by 0.3%.
    • Full report
    • Other ETFs: XHB, PKB
    • Previously: Pending Home Sales rises 0.4%
  • May. 28, 2014, 3:01 PM
    • Jay McCanless and Annie Worthman at Sterne Agee say without the benefit of a lower tax rate other non-operating boosts, Toll Brothers (TOL +2.1%) would have missed the team's EPS estimate of $0.31 per share. They continue to rate the stock an Underperform with $28 price target.
    • The bullish team at MKM Partners note Toll "essentially raised" guidance by boosting the low end of its average expected sale price this year to $690K from $675K. "Given the company’s long build cycle, we suspect that the higher guidance is likely more of a statement on the anticipated mix of closings rather than a signal that prices are being raised more aggressively."
    • Amid the big gain by Toll and sharply lower interest rates, some other builders: Hovnanian (HOV +1.7%), Beazer Homes (BZH +1.4%), KB Home (KBH +0.8%), Lennar (LEN +0.2%), PulteGroup (PHM), D.R. Horton (DHI +1.2%).
    • ETFs: XHB, ITB, PKB
    • Previously: High home prices boost Toll results
    • Previously: Toll Brothers beats by $0.09, beats on revenue
    | 1 Comment
  • May. 23, 2014, 10:08 AM
    • New single-family home sales of 433K in April were 6.4% above the revised March rate of 407K (originally reported as just 384K), but 4.2% lower than a year ago. The confidence (or lack thereof) level on any one month of reading is plus or minus 15.9%.
    • The median sales price of $275.8K is down 1.3% Y/Y.
    • The supply of homes on the market is 5.3 months at the current sales rate, down from 5.6 months in March.
    • Full report
    • ITB +1.1%, XHB +0.9%
ITB vs. ETF Alternatives
ITB Description
The iShares Dow Jones U.S. Home Construction Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Select Home Construction Index.
See more details on sponsor's website
Find the right ETFs for your portfolio: Seeking Alpha's new ETF Hub