Arab Today, arab today us housing sector rebounds from 6 year slump
Last Updated : GMT 08:59:11
Arab Today, arab today
Arab Today, arab today

US housing sector rebounds from 6 year slump

Arab Today, arab today

Arab Today, arab today US housing sector rebounds from 6 year slump

Washington - Arabstoday

US homebuilder shares are appreciating at a record rate this year, reflecting confidence the housing rebound from a six-year slump can accelerate with new-home sales still 50 per cent below the 40-year average. The Standard & Poor’s Supercomposite Homebuilder Index of 11 companies has climbed 53 percent this year through Aug. 10, compared with a 12 per cent gain for the broader S&P 500 Index. (SPX) Builders, including PulteGroup Inc. (PHM) and DR Horton Inc. (DHI), are raising prices in markets with limited inventory and targeting move-up buyers with more money for down payments and better access to credit than first-time purchasers. “We’re getting more activity, more traffic and even pricing has begun to improve,” said Jason Benowitz, portfolio manager for Roosevelt Investments in New York, which holds an almost 2 percent stake in Lennar Corp. (LEN) “If the economy can muddle along, then we think housing will continue to be a bright spot. And the homebuilder stocks have room to run from here.” Shares rallied as new homes sold at a seasonally adjusted annual rate of 350,000 in June, about half the 40-year average, according to Commerce Department data. That’s still an improvement over 304,000 in June 2011 — enough to help engender a big rebound for homebuilders, which underperformed the S&P 500 from 2005 through 2011. PulteGroup has jumped 98 per cent this year, Lennar is up 59 per cent, Toll Brothers Inc. (TOL) rose 49 per cent and D.R. Horton has increased 43 per cent. The annual equivalent returns for the S&P homebuilding index so far in 2012 would be more than 100 percent — the best for any year in data going back to 1995. The index lost 87 per cent from a peak in 2005 to its low in November 2008. “Sales are a long way from where they were, even if you take out the bubble and look at more normal housing cycles,” said Doug Duncan, chief economist at Washington-based Fannie Mae. “While we’re still below a level you would expect to see, we’re on the right direction.” Single family construction currently accounts for just a fraction of the 0.22 percentage point that housing adds to gross domestic product. Still, it influences a large basket of other businesses with broad impact on economic growth, including Lowe’s Cos. (LOW) and other home-furnishings retailers, and building suppliers such as Owens Corning Inc. (OC) USG Corp. (USG), which manufactures gypsum wallboard, and Fortune Brands Home & Security Inc. (FBHS), maker of kitchen cabinetry, plumbing products, doors and windows, already are getting a boost from all the building, said Bob Wetenhall, a homebuilder analyst for RBC Capital Markets in New York. Single-family starts hit a 50-year high of 1.8 million in January 2006 as home prices rose, then sank to a 50-year low by March 2009. After unsteady growth since then, starts have risen in four consecutive months for the first time since 2010. “For the building-product guys, it’s tremendous,” Wetenhall said. “There’s a lot of fixed costs, and if you get volume, you absorb costs over a large number of units.” Fortune Brands’ sales jumped 5 percent to $935 million in the second quarter compared with a year earlier on the strength of new-home construction, the Deerfield, Illinois-based company said July 26. Residential building also benefits rail and trucking companies, contributes to federal and local tax coffers and boosts spending by buyers eager to furnish, decorate and equip their new home. Consumers spend between $6,000 and $8,000 on such products when they buy a house, according to the National Association of Home Builders. “We’re going back to tradition with the pent-up demand that you typically would get with the recession,” said David Crowe, chief economist of the Washington-based homebuilders association. “Housing is often the spark in a recovery. We see the potential for it igniting momentum.” For half a century, housing was the tonic that helped restore the ailing economy after slumps. Apartments and new and existing homes added 0.26 percentage point on average to the quarterly growth rate during all expansions since World War II, according to a Fannie Mae analysis. Single-family construction accounted for more than half the contribution before the 18- month recession that ended in June 2009. Now new homes represent about a third. From:Gulftoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today us housing sector rebounds from 6 year slump Arab Today, arab today us housing sector rebounds from 6 year slump

 



Arab Today, arab today
Arab Today, arab today Nohan Seyam designs beautiful accessories

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today 11 family members dead in rebel push

GMT 07:57 2017 Tuesday ,21 February

11 family members dead in rebel push
Arab Today, arab today To probe sexual harassment claims

GMT 10:08 2017 Tuesday ,21 February

To probe sexual harassment claims
View News in Arabic - Business: عقارات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Janat pleased for issuing 'Good Morning'

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 05:15 2017 Tuesday ,21 February

Omega 3 can reduce asthma cases

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 16:08 2017 Wednesday ,15 February

Shawsh reveals her collection "Jewelry of dreams"
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday