US Existing Home Purchases Take A Plunge (KBH, PHM, TOL, LEN, XHB, PKB)
Sales of previously-owned US homes plunged more than anticipated in December, the month after a government tax credit was originally due to expire. Purchases fell by a record 17% to a 5.45 million annual rate from 6.54 million in November, according to the National Association of Realtors (NAR).
The decline in sales was expected for December, as buyers had rushed to complete deals before the original deadline of November 30, 2009 for the tax credits. However, with the deadline now shifted to April 30, the NAR expects the sales of homes to surge once again in spring.
Although December sales fell to a seasonally-adjusted annual rate of 5.45 million from 6.54 million in November, they were still 15% higher than the level seen in December 2008. The median sales price moved up 1.5% to $178,300, reflecting a rise for the first time in the past couple of years.
The downturn in December sales has exerted pressure on housing stocks as well. While Pulte Homes Inc (NYSE: PHM) lost 0.15%, KB Home (NYSE: KBH) moved down by 0.98%. Among the other sufferers were Toll Brothers Inc (NYSE: TOL) that recorded a decline of 1.53% and Lennar Corporation (NYSE: LEN) that fell 1.01%.
Among the ETFs, SPDR S&P Homebuilders (NYSE: XHB) moved up 0.60%, while PowerShares Dynamic Building & Construction (ETF) (NYSE: PKB) lost 0.58%.
Read more from from Benzinga's Markets. Markets - http://www.benzinga.com/markets
