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Homebuilders slide after soft new home sales print

Published 11/28/2018, 10:28 AM
© Reuters.  Homebuilders slide after soft new home sales print
  • October new home sales slumped to a near-three-year low of 544K (seasonally-adjusted annualized pace). That's down from 597K in September (which was originally reported as 553K), and missed estimates for 575K.
  • On a year-over-year basis October new home sales were up a slim 2.8%.
  • The median sales price of $309.7K was down 3.1% Y/Y, and the inventory-to-sales ratio rose to 7.4 months (6 months is considered a "balance" market).
  • The news has taken some of the starch out of a recent modest rally in the homebuilders. The iShares U.S. Construction ETF (ITB -2.2%)
  • Individual players: Toll Brothers (TOL -3.7%), Lennar (LEN -2.8%), Pulte (PHM -2.7%), KB Home (KBH -3.4%), D.R. Horton (DHI -2.7%), Hovnanian (HOV -0.4%)
  • Now read: Market Conditions Are Tumbling For Homebuilders


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