Is it safe to buy home builders?

Filed under: D.R.Horton (DHI), KB HOME (KBH), Lennar Corp'A' (LEN), Stocks to Buy, Housing

The past few years haven't been what you might call a happy time for shares of home building stocks. Consider that the Homebuilders Exchange-Traded Fund (NYSE: XHB) plunged from $40 per share in early 2007 to just $8 per share earlier this year.

Since March, however, things have improved. There are signs that the housing market is getting back on its feet -- or at least, declining less slowly. Existing home sales recently registered their biggest gain in more than a decade. Seasonally-adjusted single-family building permits are up 27% since bottoming in March, while single-family housing starts have increased five straight months and are up 36% since March.

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Is it safe to buy home builders? originally appeared on BloggingStocks on Sat, 29 Aug 2009 09:00:00 EST. Please see our terms for use of feeds.

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