Homebuilders’ stocks fall in line with new home sales Investing.com

Author: Dyrendra Tripatti

Investing.com-Residential construction company shares weakened on Monday as the latest data showed that single-family home sales fell in the US in June.

Lena (NYSE code:), DR Horton Inc (NYSE code:), NVR (NYSE code:), Pulte Group (NYSE code:), Thor Brothers (NYSE:) and Taylor Morrison (NYSE:) fell 1% to 1.4%.

A report released by the US Department of Commerce showed that new home sales fell by 6.6% last month, and the seasonally adjusted annual rate was 676,000 units, the lowest level since April 2020. Sales in May were revised to 724,000 units from the previously reported 769,000 units. According to Reuters, sales have now fallen for three consecutive months.

This is after expensive building materials and a booming market have pushed house prices to their 30-year highs.

This is because economic growth and working from home have become mainstream. People look for permanent, larger and more suitable housing. Low interest rates have contributed to stimulating demand.

TRI Pointe (NYSE:) stock is a rare exception, rising 0.2% because people remain positive about the second quarter results announced on July 22.

Net income more than doubled to 117.9 million U.S. dollars, or diluted earnings per share of 1 U.S. dollars, compared with 56.5 million U.S. dollars in the same period last year, or 43 cents per diluted earnings.

Tri Pointe’s home sales revenue was US$1 billion, compared to US$766.9 million, an increase of 32%.