Housing Starts Rebound, Lift Homebuilder Stocks: Sign Of Economic Resilience
Portfolio Pulse from Neil Dennis
February saw a rebound in housing starts, with a 10.7% increase to an annualized rate of 1.521 million, surpassing forecasts. Building permits also rose by 1.9%. Despite high interest rates affecting affordability, the housing market shows resilience with stable demand and a shortage of existing homes for sale. The iShares U.S. Home Construction ETF (ITB) has gained 78% since the beginning of 2023 but dipped 1.6% since March. D.R. Horton Inc (DHE) remains flat year-to-date, while Lennar Corporation (LEN) is up 5% despite recent drops.
March 20, 2024 | 12:56 pm
News sentiment analysis
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NEGATIVE IMPACT
D.R. Horton Inc remains flat year-to-date after its quarterly results disappointed investors.
DHE's flat performance is directly tied to its disappointing quarterly results, suggesting a negative short-term impact on its stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
The iShares U.S. Home Construction ETF saw a significant gain of 78% since the start of 2023 but experienced a 1.6% decline since March.
The ITB ETF's performance reflects the overall resilience of the housing market despite recent dips. Its short-term impact is neutral due to mixed signals from the market.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Lennar Corporation is up 5% year-to-date, despite a recent sharp drop after missing revenue estimates.
LEN's overall positive performance YTD is tempered by recent drops, indicating a neutral short-term impact due to mixed market reactions.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 85