HomebuilderStocks.com Reports December Housing Starts Data Boosts Homebuilder Stocks.
POINT ROBERTS, WA. January 19th, 2005 – www.HomebuilderStocks.com, (HBS) a global investment news and research portal for the homebuilder sector, reports that following the release of a Commerce Department report on US housing starts fort December, share prices of the sectors major homebuilders increased. Both analysts and market participants remain firmly bullish in their forecasts for the coming year.
HBS does not make stock recommendations but offers a unique free information portal for investors to explore news, articles, and recent research. The site is currently compensated by featured company International Barrier Technology Inc. (IBTGF: OTCBB; IBH: TSXV).
December Housing Starts Data Boosts Homebuilder Stocks
A new report by the Commerce Department today announced that US housing starts increased by 10.9% in December. This gain represents the biggest jump in starts in the last seven years, with 2004 being the strongest for the sector since 1978. The release of this data caused share prices of major homebuilders to swell, as well as pushing the Dow Jones U.S. Home Construction Index up by 1% (hitting a record high). 2004 job growth and friendly mortgage rates (30 year rates averaged 6%) were cited as beneficial economic parameters for the housing start increase. This news was greeted with relief following the sharp decline in numbers this past November.
Construction of new homes and apartments in December reached a seasonally adjusted annual rate of 2.0 million units. Housing construction has increased year on year since the precipitous drop of 4.4% in 2000. The Ryland Group Inc. (NYSE: RYL Toll Brothers (NYSE: TOL Beazer Homes USA Inc., and Pulte Homes Inc., were the big gainers on the NYSE.
On Tuesday after trading closed, The Ryland Group announced net income of $108.7 million, or $2.17 per diluted share, for the period ended Dec. 31, which was up from $86.1 million ($1.65 per share) for the year-earlier quarter. The Hovnanian Company said that they expected earnings to rise more than 35% over the same period last year. The company also reaffirmed expectations that earnings for the full year ending Oct. 31 would exceed $6.50 per share.
Also released today, a statement from The Public Home Builders Council of America announced their 2005 housing outlook, stating that their members, large public builders, anticipated strong, top and bottom-line financial performances in 2005. The aggregated projections for most PHBCA members included year-over-year earnings growth of between 10 percent and above 30 percent.
Sector growth and a bullish housing outlook were reported on in an original article by www.HomebuilderStocks.com at the beginning of January (“Homebuilder Stocks Finish Up A Record Breaking Year With Strong Projections For 2005.” Click here for full article: http://www.homebuilderstocks.com/Companies/HomebuilderStocks/Articles/Homebuilder_Growth.asp).
Our current list of public companies in the sector includes: Toll Brothers (NYSE: TOL Beazer Homes USA, Inc., Ryland Group (NYSE: RYL) , Brookfield Homes, Centex, Inc., Home Depot, Homestore, Inc., KB Home, Lennar Corporation, Lowes, Monterey Homes, Orleans Homebuilders, Inc., Pulte Homes and numerous others.
For the complete list, click here: http://www.homebuilderstocks.com/Companies/HomebuilderStocks/HomebuilderStockList.asp
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SOURCE: ECON Investor Relations Inc., which owns the domain www.HomebuilderStocks.com.
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