Homebuilder Investors Losing Confidence After Surprise Decline In Existing Home Sales

The National Association of Realtors reported an extremely disappointing U.S. existing home sales number for the month of February Monday morning. Home sales reportedly dropped 7.1 percent to an annual rate of only 5.08 million units, well off the 2.8 percent decline that economists were expecting.

The sharp decline in the U.S. housing market could be a troubling sign that the U.S. economic resiliency during a weak global period may not be a strong as some had hoped. The weak housing number is major contrast to strong U.S. employment data and factory output stabilization.

Related Link: EIU: Trump Presidency Would Be A Global Threat, Same Risk Level To Economy As Jihadi Terrorism

The Northeast housing market was hit particularly hard during February, with sales falling 17.1 percent.

  • Massive Demand & Disruptive Potential – Boxabl has received interest for over 190,000 homes, positioning itself as a major disruptor in the housing market.
  • Revolutionary Manufacturing Approach – Inspired by Henry Ford’s assembly line, Boxabl’s foldable tiny homes are designed for high-efficiency production, making homeownership more accessible.
  • Affordable Investment Opportunity – With homes priced at $60,000, Boxabl is raising $1 billion to scale production, offering investors a chance to own a stake in its growth.
Share Price: $0.80
Min. Investment: $1,000
Valuation: $3.5B

Despite the relatively weak month, February home sales remained up 2.2 percent year-over-year (Y/Y). In addition, the median home price is up 4.4 percent Y/Y to $210,800.

The number of unsold homes on the U.S. market came in at 1.88 million units in February. That number represents a 3.3 percent increase over January’s number, but a 1.1 percent decrease Y/Y.

The S&P 500 initially sold off on Monday following the weak housing news. Shares of William Lyon Homes WLH, D.R. Horton, Inc. DHI, Beazer Homes USA, Inc. BZH and Toll Brothers Inc TOL were all down in mid-day trading.

Disclosure: The author holds no position in the stocks mentioned.

Image Credit: Public Domain
BZH Logo
BZHBeazer Homes USA Inc
$22.31-2.87%

Stock Score Locked: Edge Members Only

Benzinga Rankings give you vital metrics on any stock – anytime.

Unlock Rankings
Edge Rankings
Momentum
19.23
Growth
61.30
Quality
63.71
Value
93.26
Price Trend
Short
Medium
Long
Market News and Data brought to you by Benzinga APIs

Comments
Loading...