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iShares U.S. Home Construction ETF (ITB)

  • Oct. 28, 2014, 9:52 AM
    • "There is a chance of home prices going negative," Robert Shiller tells CNBC after the Case-Shiller 20-city composite index rose just 5.6% Y/Y in August, down from 6.7% in July.
    • On a monthly basis, prices increased 0.2%, well shy of expectations for 0.5%, and 0.6% a month previous. Leading the slowdown is the Sun Belt which reported its worst annual returns since 2012.
    • "In housing, boring is better," says Zillow's Stan Humphries. Cooling price appreciation and more inline inventory will give buyers a hand up after several years of sellers being in the driver's seat.
    • ITB +0.5%, XHB +0.3%
  • Oct. 24, 2014, 10:25 AM
    • September new home sales at a seasonally adjusted annualized rate of 467K were 0.2% above August's 466K (revised from 504K), and 17% above the level of a year ago.
    • Inventory stands at 5.3 months of supply at the current sales pace vs. 5.5 months one year ago.
    • On a monthly basis, sales jumped 12.3% in the Midwest, rose 2% in the South, were flat in the East, and fell 8.9% in the West.
    • Full report
    • ITB -0.6%, XHB -0.4%
  • Oct. 23, 2014, 5:18 PM
    • "Many builders indicated that they were having a more difficult time filling positions compared to one year earlier," says the Atlanta Fed in its Construction and Real Estate Survey. "A shortage of labor was noted across many trades, including masons, drywall hangers, framers, electricians, and plumbers."
    • The diffusion index on construction activity and the 90-day outlook fell to its lowest level since about the start of 2012 as a growing number of builders report activity as flat to slightly down.
    • As for buyer traffic, the report from brokers and builders was mixed, with those indicating a decline suggesting seasonal factors and a drop in buyer confidence as being the main factors behind the dip.
    • Homebuilder ETFs: ITB, XHB
    | Comment!
  • Oct. 22, 2014, 3:53 PM
    • While the MBA mortgage application index jumped 11.6% in the week ended October 17, it was a 23.3% surge in refinances leading the way. Purchase applications actually fell 4.6%, are now 9% lower than year-ago levels, and last week made up just 35% of total applications - this despite significantly lower mortgage rates.
    • What it suggests is - for now - lower rates aren't luring homebuyers.
    • Homebuilder ETFs: ITB -0.4%, XHB -0.9%.
    • Previously: Refinancing leads jump in mortgage applications
    | Comment!
  • Oct. 21, 2014, 10:45 AM
    • September existing-home sales of 5.17M (at a seasonally adjusted annualized rate) is up from 5.05M in August, and marks the fastest pace this year, but 1.7% below the level of September 2013.
    • The median existing-home price for all housing types of $209.7K is up 5.6% Y/Y.
    • Total housing inventory of 2.3M homes is off 1.3% and represents a 5.3-month supply at the current sales pace. Inventory is up 6% Y/Y.
    • All cash sales were 24% of all transactions vs. 33% one year ago. Individual investors purchased 14% of homes vs. 19% last year.
    • First-time buyers remain at just 29% off all buyers - they've represented less than 30% of all buyers for the 17th month in the last 18.
    • Full report
    • ITB +1.6%, XHB +1.8%
    | Comment!
  • Oct. 17, 2014, 10:06 AM
    • September housing starts at a seasonally-adjusted rate of 1.017M were 6.3% higher than August and 17.8% higher than a year ago, with single-family starts up just 1.1% from August and volatile multi-family starts up a big 18.5%.
    • Building permits rose 1.5%, with single-family permits down 0.5% and multi-family up 7%.
    • Full report
    • Homebuilder ETFs: ITB +1.1%, XHB +1%
    • Previously: Housing Starts rise in September
  • Sep. 24, 2014, 10:25 AM
    • Bond prices are mostly snoozing through the August New Home Sales report showing sales of single-family homes surging 18% to a six-year high of 504K (seasonally adjusted annual rate). Expectations had been for a pace of 426K. The 504K print is 33% higher than August one year ago.
    • Also ignoring the volatile number and instead focusing on weak results from KB Home, the ITB is lower by 0.8%.
    • The 10-year Treasury yield has actually dropped nearly two basis points since the print, now flat on the session at 2.53%. TLT flat.
  • Sep. 24, 2014, 10:12 AM
    • iShares U.S. Home Construction ETF (NYSEARCA:ITB) announces quarterly distribution of $0.0214.
    • 30-Day SEC yield of 0.28% (as on 08/31/2014).
    • Payable Sept. 30; for shareholders of record Sept. 26; ex-Div. Sept. 24.
    | Comment!
  • Sep. 18, 2014, 3:05 PM
    • That's hard to believe given single-family housing starts are on a pace of 622K this year, after 618K a year ago - a far cry from the pre-bubble average of 1.1M in the 1990s. Trouble is, says Kelko, the historical norm doesn't say what the level of construction should be now. Instead, look at the rate of household formation.
    • If housing starts run ahead of the rate of household formation, homes sit empty and vacancies rise, and that's just what the latest data from the Census Bureau shows. As opposed to multi-unit rental market where vacancies are falling. Even with an increase in single-family rentals, the overall single-family vacancy rate ticked up to 10.7% in 2013 from 10.6% a year earlier, and vs. 7.4% in the pre-bubble days of 2000.
    • For single-family vacancy rates to get back to normal, even household formation needs to increase or housing starts need to slow. In the meantime, it will be multi-family activity needing to lead the construction recovery.
    • Separately, the former head of Goldman's housing research team says home prices are 12% overvalued today and have already started to slide. "I am lamentably confident that home prices will fall by 15% within three years."
    • Homebuilder ETFs: ITB, XHB
  • Sep. 18, 2014, 8:52 AM
    • August housing starts of 956K fell 14.4% from July's 1.1M, and were 8% higher than a year ago. Single-family starts of 643K fell 2.4% from July, making volatile multi-family starts the key to August's drop.
    • Building permits of 998K declined 5.6% from July and were up 5.3% from a year ago.
    • Full report
    • The iShares DJ U.S. Home Construction ETF (NYSEARCA:ITB) is lower by 0.35% premarket. The more homebuilder supply-focused XHB shows no premarket action.
    | 1 Comment
  • Sep. 17, 2014, 10:50 AM
    • “Since early summer, builders in many markets across the nation have been reporting that buyer interest and traffic have picked up," says NAHB Chairman Kevin Kelly. On the other hand, says NAHB Chief Economist David Crowe, "We are still not seeing much activity from first-time homebuyers."
    • This month's increase in the headline Housing Market Index to 59 was the fourth straight gain, and brought the level to its highest since November 2005.
    • ITB +3%, XHB +1.8%
    • Previously: Homebuilders party after Lennar results
    | Comment!
  • Sep. 17, 2014, 10:04 AM
    • Lennar's sizable earnings beat included a 23% gain in new orders - a strong result given the slowdown seen from some other builders.
    • Previously: Lennar up 4.3% after reporting big quarter
    • ETFs: ITB +2.6%, XHB +1.8%
    • Individual players: Ryland (RYL +4.8%) Pulte (PHM +3.8%), Toll Bros. (TOL +3.2%), D.R. Horton (DHI +4%), Hovnanian (HOV +5.8%), KB Home (KBH +4.4%), Comstock (CHCI +4.2%), Standard Pacific (SPF +3.8%).
  • Sep. 3, 2014, 10:16 AM
    • The homebuilders are lower in early action following Toll Brothers beating earnings estimates, but expressing caution on pricing power, and cutting guidance for full-year home deliveries.
    • ITB -0.8%, XHB -0.5%.
    • Individual names: Hovnanian (HOV -0.9%), Lennar (LEN -1.5%), KB Home (KBH -1.8%), PulteGroup (PHM -1.4%), D.R. Horton (DHI -1.1%), Ryland (RYL -1.5%), NVR (NVR -1.1%), Standard Pacific (SPF -1.1%).
    | 1 Comment
  • Aug. 28, 2014, 10:23 AM
    • July's NAR Pending Home Sales Index of 105.9 is up 3.3% from June and 2.1% below last year.
    • This is the highest index level in 11 months due to favorable housing conditions and lower interest rates.
    • NAR's Larry Yun expects existing home sales to decline 2.1% to 4.98M.
    • ITB -0.8%, XHB -1.5%
    • Full report
    | Comment!
  • 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
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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.
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