Homebuilders Fall On Foreclosure Data (MHO, KBH, PHM, SKY, TOL, BZH, HOV, NVR)
After some recent analyst optimism in the homebuilder space, stocks sold off sharply on Thursday’s foreclosure data from RealtyTrac. According to coverage by Bloomberg, bank repossessions jumped 25% year-over-year in August. Seized properties spiked to 95,364 last month, marking the highest figure on record — dating back to 2005. Meanwhile, foreclosure filings were down by -5% year-over-year, but they were up by 4% sequentially.
As a whole, the Homebuilder Stocks Index is off by -4% on the day in a broad selloff that has all 18 components in negative territory. The Index has maintained a fractional lead on the S&P 500 over the last month.
M/I Homes (MHO), KB Home (KBH), PulteGroup Inc (PHM), and Skyline (SKY) are all among the day’s worst performing homebuilders, slipping by more than -4%. Meanwhile, luxury builder Toll Brothers (TOL), Beazer Homes USA (BZH), and Hovnanian Enterprises (HOV) are slipping by -1% or more.
It will be interesting to see whether bargain hunters start buying on the dip, or if more bearish housing data will erase the sector’s monthly gains. Investors can track the Homebuilder Stocks Index for performance trends and a suite of other metrics at tickerspy.com.
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