Housing sales dropped in May as prices plunged
New home sales dropped sharply in May. Prices also fell. In May median home prices fell month to month which not so unusual. But prices in May also fell Yr/Yr for the first time in at least 12 years. The weakness in housing is real and is continuing unabated. The increase in home prices in April was a false sign of hope. The homebuilding sector is again in trouble.
Even so the homebuilders stocks as of noon were up on the day for the most part. Far from capitulating, they rose and were prospering on the day. They stand just short of the 24th percentile of their respective 52-week ranges. Meritage, Toll Brothers and NVR are the relative strongest in the group each is near its 52-week range midpoint.
|Data from June 25, 2008 ||% ch||% of|