Homebuilding Stocks Have Rallied, and Everyone's Talking About One Key Trend
First-time homebuyers have returned
Here's a house being built.
Photographer: Lori Moffett/BloombergThis article is for subscribers only.
Homebuilding stocks have been on a nice run, with the S&P Homebuilders ETF (XHB) touching a new eight-year high on Tuesday. Shares have pulled back a bit since then.
One quote from homebuilder KB Home last week explains the enthusiasm behind the sector: On the company's quarterly conference call last week, Chief Executive Officer Jeff Mezger said, "The most encouraging statistical trend that bodes very well for future housing demand is the dramatic increase now occurring in household formation," pointing to the return of the first-time buyer.