The Real Deal Miami

As new home sales decline, home builder shares drop

October 28, 2009 11:33AM

Stock shares for major U.S. home builders declined dramatically this morning, as congress debates a possible extension of the first-time homebuyer tax credit. Share prices for Toll Brothers, KB Home and Lennar dropped 3, 5.6 and 7.3 percent, respectively, according to stock data. September new home sales figures, released today from the Commerce Department, also showed a significant decline. Monthly sales decreased 3.6 percent in September, contrary to many analysts’ expectations, with 402,000 new homes sold. Meanwhile, as the November deadline for the homebuyer’s tax credit looms, congressional reports say that the program may be extended through March 31 of next year, with plans to gradually phase it out afterward. [Bloomberg] and