Skip to main content

Market Overview

Homebuilder Investors Losing Confidence After Surprise Decline In Existing Home Sales

Share:
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.

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 (NYSE: WLH), D.R. Horton, Inc. (NYSE: DHI), Beazer Homes USA, Inc. (NYSE: BZH) and Toll Brothers Inc (NYSE: TOL) were all down in mid-day trading.

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

Image Credit: Public Domain

 

Related Articles (DHI + WLH)

View Comments and Join the Discussion!

Posted-In: National Association of RealtorsLong Ideas News Econ #s Markets Trading Ideas Real Estate Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com