From the Wires
StockCall Analysis on PulteGroup and Lennar: Housing Market Sizzling
By: PR Newswire
Jan. 21, 2013 08:01 AM
LONDON, January 21, 2013 /PRNewswire/ --
The residential construction industry is primed for lift-off, following stellar December figures for single-family and multifamily home production. StockCall analysts have taken these positive notes to release their technical report on PulteGroup Inc. (NYSE: PHM) and Lennar Corporation (NYSE: LEN). Sign up today to make the most of these free reports at
With the wind at its back and the all-important spring buying period soon to come, construction companies could rise even higher. A new report from the National Association of Home Builders detailed the improved numbers, reporting that single-family and multifamily housing starts shot up 12.1% in December, marking the highest rate of new home production since June 2008. Single-family housing starts climbed 8.1% while multifamily housing starts soared 23.1%. Several major industry players have already announced sparkling quarterly results, and amongst them is Lennar Corporation which recently posted its fourth quarter earnings with home deliveries up 32% as compared to last year to 4,443 homes, and new home orders up 32% at 3,983 homes. Technical report on Lennar is available today for free at
Chief Executive Officer of Lennar Corporation Stuart Miller noted in the release that during the reported quarter the housing industry sustained its recovery pace with key factors like low mortgage rates, affordable home prices, reduced foreclosures and an extremely favorable 'rent vs. own' comparison driving recovery. Mr. Miller stated that housing should play its traditional role in the broader economic recovery by promoting jobs, boosting consumer confidence and assisting new homeowners towards wealth building through home ownership which in turn brings about economic growth.
A number of factors have contributed to the positive increase in the National Association of Home Builders numbers. Lower unemployment has granted a greater number of individuals access to income, and low interest rates have also made purchasing a home more enticing. Inventories of new homes are also depressed, which is also a positive for the residential construction industry. Furthermore, an overheated rental market has also tipped the scales in favor of buying.
It will be interesting to see if the trend continues as more companies release their financials. Industry player PulteGroup Inc. [Free Report on PHM] [(1)] will be releasing their earnings report on January 31st. The upbeat sentiment in the industry has compelled investors to react bullishly as PulteGroup saw its share price cross a new 52-week high last Friday.
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