Homebuilder Stocks

Homebuilder stocks are companies that are involved in the building of homes and condominiums for sale to the retail public. With real estate being such a large part of an economy, homebuilder stocks are an important gauge to help understand the strength of an economy. Some homebuilder stocks can get into trouble if they become over-leveraged, taking on too much debt to try and increase their revenue and earnings. Homebuilder stocks are very susceptible to shifts in interest rates and changes to the job market. When rates are lowered and more jobs are being created, this is a favorable environment for homebuilder stocks. Conversely, when interest rates are rising and jobs are being lost, this can be seen as a negative for homebuilder stocks.


In spite of some doom and gloom scenarios for the housing market, so far it has been full steam ahead as the sector continues to blaze along since bouncing out of the Great Recession in 2008. With interest rates and mortgage…

The housing market that lured institutional investors in during 2012 and 2013 is showing signs of cracking. Before I go into more detail, you have to keep in mind that affordability is the key to the housing market and affordability…

Finally, some good news for the U.S. economy? The National Association of Realtors (NAR) just reported July existing-home sales increased in the U.S. housing market to an annual rate of 5.39 million homes—up 17.2% from July of 2012. (Source: National…

Homebuilder stocks are heading into dangerous territory and investors need to take note—even if they don’t own these stocks—because the move to the downside for this barometer of activity in the U.S. housing market is significant. The most important factor…

Quantitative easing was supposed to bring economic growth to the U.S. economy, but it is failing at its job. Just look at the chart below to see how badly things have turned out. The chart shows the velocity of money…

When a stock market sector is hot, it always pays to look for spin-off trades. These are investments related to the underlying strength in a particular industry and stock market sector. Housing, construction, and new home builder stocks have been…

My cousin and his family had to walk away from their house in Arizona. There were no buyers, and they were underwater after the market crashed. The whole thing was really hard on them on all fronts, and they had…

The housing market has clearly reached a bottom and is turning upward. After years of dismal sales, a lot of foreclosures and short sales, and declining home prices, there’s strong optimism, which has resulted in a sizzling demand for homebuilder…

The housing market is well on its way to recovery. Following several years of dismal sales, high foreclosures, short sales, and declining home prices, there’s strong optimism now. Remember when your home was your castle? We are near that stage…

We have continued to see strong data pointing to a rebound in the housing market. The latest report from CoreLogic, Inc. (NYSE/CLGX), a research and analytics firm, is that, in October 2012, home prices, including distressed sales, jumped up 6.3%…

The housing market has clearly bottomed out and is gaining some traction. We are seeing growth in building permits, housing starts, and an upward move in home prices across the nation. The S&P/Case-Shiller Home Price Index, comprised of the 20…

The housing market is clearly on the upside, with stronger housing starts and building permits. In July, there were 746,000 housing starts, which was below the 763,000 estimate and the revised 754,000 in June. The reading was a bit soft…