The Real Deal Miami

U.S. home builder stocks stay strong despite weak new home sales

March 24, 2011 12:24PM

Even though sales are lethargic in the new home market nationwide, home builder stocks are hanging tough, according to CNNMoney. Despite a 17 percent drop in the number of new homes sold between February and January, major U.S. home builders like Ryland, KB Home and Lennar have seen their shares stay relatively flat recently, while PulteGroup actually saw its shares climb 3 percent. Ryan Detrick, a senior technical strategist with Schaffer’s Investment Research, said he’s encouraged by the builders’ stock performance. “I’m not saying you should go buy a house because nobody knows where prices are going,” Detrick said. “But even though the data is terrible, builder stocks are holding up.” [CNNMoney]