Our theme of Housing Stocks, which includes the stocks of home improvement players, building supply companies, and home builders such as Pulte Group and Lennar
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The total number of new single-family homes sold for the month of August, the most recent data reported by the U.S. Census Bureau, stood at a seasonally adjusted annual rate of 675,000, units, up about 6% versus last year’s number. However, it marks a slight decline from the June figures. Prices have also cooled a bit, with the median price of new homes standing at $430,300 for the month, below the $440,300 seen in July 2022. New homebuilding activity has picked up a bit. U.S. single-family homebuilding rebounded, with housing starts rising 7.0% in September, with single-family starts rising 3.2% and multi-family starts soaring 17.1%. Demand for new construction is surging due to the housing shortage and a lack of availability of existing homes. With mortgage rates surging, it is more likely that existing homeowners, who have locked into lower mortgage rates will stay put, given the lower incentive of selling their homes. Supply chain challenges are also easing for the housing sector, potentially helping input costs and prices for builders.
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