Even amid favorable macroeconomic trends, homebuilder stocks, including Lennar, remain well off their summer highs
By Steve Russolillo | The Wall Street Journal
The current economic environment seems wonderful for home builders. Their stock prices don’t agree, though, perhaps with good reason.
Low interest rates, an improving job market and rising rents suggest the business should be booming. Relatively low inventory of existing homes for sale is pushing the values of both old and new ones higher. In terms of months of supply, the number of existing homes is near its lowest in over a decade.
