Toll Brothers (TOL) (DHI) (CVCO) (MHO) Struggle on New Home Sales

Toll Brothers (NYSE:TOL), D.R. Horton (NYSE:DHI), Cavco Industries (NASDAQ:CVCO) and M/I Homes (NYSE:MHO) Struggle were all under pressure today on news new home sales plunged again in February, dropping to its slowest pace on record.

The exception was Pulte Group, which went against the grain and are trading strongly in the positive.

According to the Commerce Department report Wednesday, sales declined 16.9 percent to a 250,000 annual pace in February, down from a revised rate of 301,000 in January. Analysts were looking for a narrower decline to 290,000 for the month.

"The median new home price plunged 8.9 percent from the same month in 2010, hitting the lowest level since 2003. Depreciating home values and a slower pace of home-buying is a worrying factor to many in the economic recovery. The Federal Reserve has highlighted the slow rebound that the housing market is experiencing in several of its recent statements, saying that the ailing market is a persistent overhang on unemployment and GDP growth. The data follows a separate government report released Monday showing that existing home sales fell 9.6% in February," said Forbes.

M/I Homes dropped on the news, but has rebounded slightly to trade at $13.99, gaining $0.02, or 0.14 percent, as of 2:16 PM EDT. Cavco was trading at $43.26, down $0.30, or 0.69 percent. D.R. Horton was at $11.78, falling $0.07, or 0.59 percent. Toll Brothers was trading at $20.21, declining $0.28, or 1.37 percent. Pulte was at $7.39, gaining $0.25, or 3.43 percent.




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