Home-Builder Shares Jump As February New Home Sales Increase
March 25 2009 - 11:13AM
Dow Jones News
The U.S. housing sector continues to see signs of improvement.
The latest government data showed new home sales climbed in
February for the first time in seven months, sending shares of
home-building companies soaring.
The Dow Jones US Home Construction Index added nearly 10%,
fueled by Hovnanian Enterprises Inc.' (HOV) gain topping 20%.
Standard Pacific Corp. (SPF) added 19%, while industry giant D.R.
Horton Inc. (DHI) gained 13%.
Sales of single-family homes increased by 4.7% to a seasonally
adjusted annual rate of 337,000, the U.S. Commerce Department said
Wednesday. Economists surveyed by Dow Jones Newswires expected
February sales to be down 2.9% to a 300,000 annual rate.
The report marks the latest glimmer of hope for an industry
battered by the prolonged housing downturn. The government last
week said home construction in February increased 22.2% to a
seasonally adjusted 583,000 annual rate. And realtors this week
reported existing-home sales advanced last month.
Even so, year over year, new-home sales were 41.1% lower than
February 2008's level.
-By Dawn Wotapka, Dow Jones Newswires; 201-938-5248;
dawn.wotapka@dowjones.com