Sunday, February 16, 2014

The National Association of Home Builders

With a gradual recovery in the overall economy, the homebuilding industry is finally looking better in 2012. The downturn during 2006-2007 had hit the homebuilding sector hard. Some traders believe that the housing market is starting to benefit from an increase in employment rates and higher consumer confidence.  Houses are more affordable now as mortgage loans come with relatively low interest rates while renting becomes more expensive. Many homebuilding companies are showing better year-over-year growth in revenues, driven by an increase in new home orders and average selling prices.  Backlogs  number of homes under sales contracts at the end of the year  and homes delivered are also climbing year over year. Also, improving homebuilding revenues combined with tight cost control by most homebuilders are helping margins. The large discounts and incentives offered in response to declining demand and an oversupply problems are gradually being eliminated.
Home Building Stocks