Americans bought new homes in May at the fastest pace in more than two years. The increase suggests a modest recovery in the housing market continues, despite weaker job growth.
The Commerce Department said Monday that sales of new homes increased 7.6 percent in May from April to a seasonally adjusted annual rate of 369,000 homes. That's the best pace since April 2010, the last month that buyers could qualify for a federal home-buying tax credit.
Even with the gains, the pace is less than half the 700,000 that economists consider to be healthy.
Homebuilder Stocks Trading Alert; Beazer Homes (NYSE: BZH), Hovnanian (NYSE: HOV), KB Home (NYSE: KBH), PulteGroup (NYSE: PHM)
POINT ROBERTS, Wash., May 24, 2011 - www.InvestorIdeas.com, a global investor research
portal for independent investors specializing in sector stock research including homebuilder
stocks reports on trading for the sector following news that US home sales rose in April to an
annual rate of 323,000 , up 7.3% . Several homebuilder stocks had an immediate bounce to the
U.S. equity markets broke sharply on Tuesday after disappointing housing data encouraged profit-taking after the recent strong run-up and investors expressed worry about the strength of the economic recovery. The weakness in the equity markets was broad-based as all sectors including industrial, energy and consumer were hit with selling pressure.
Are We Heading for a Decade of 1970s-Style Stagflation?
Four key factors in the 1970s were very different from present conditions, and that argues against 1970s-style stagflation as a model for 2010-2020.
Sometimes history rhymes--but only for the first line. On the surface, there are reasons to anticipate a 1970s-style stagflation in the decade ahead: a stagnating economy beset by rising inflation.
Let's turn our attention to real estate for a minute. The thorn in the economic recovery's side, after all, has been the mortgage market. Investors are worried that with so many mortgage holders under water, the hoped for economic reversal has no chance to stick. Debt relief has been a paramount concern since the credit crisis began, and rightfully so. Yet it has been elusive.