NVR - Homebuilder stocks dip after unexpected decline in new home sales

mphillips007/iStock Unreleased via Getty Images Homebuilder stocks fall as U.S. new home sales in May unexpectedly fell -5.9% M/M, a 1-year low to 769K vs. 868K expected and 817 prior (revised from 863K). What may be exacerbating declining new home sales is the median sale price of new homes sold was $374.4K in May, a new record, up from $372.4K the prior month, making it less affordable for first-time homebuyers to commit despite mortgage rates under 3%. The iShares U.S. Home Construction ETF (ITB) closed down 1.0% as some of its largest holdings such as Lennar (LEN) -1.5%, NVR (NVR) -0.6%, and D.R. Horton (DHI) -1.4%. The red hot housing market may have reached its tipping point as prices continue to surge. As a result, inventories have started to creep up from record low levels. Another signal that the housing market gains may pause is that May housing starts came in below expectations and building permits

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Homebuilder stocks dip after unexpected decline in new home sales