Stocks closed higher Tuesday, with major averages hitting a two-month high, as investors were encouraged that a deal would soon be made in Washington to avoid the "fiscal cliff."
The nation's home builders continue to feel much better about their industry.
Fears of the fiscal cliff could be impacting potential buyers already. The new home sales monthly number from the U.S. Department of Commerce is based on signed contracts.
Sales of existing homes are recovering slowly, but a drop in supplies of those homes is pushing confidence among the new home builders to a six year high.
The federal agency that some credit with saving the housing market during the worst of the recent crash, may now be in need of taxpayer help itself.
The homebuilders are rising from the ashes, after overbuilding and a credit crash sent sales and construction to levels not seen economists began counting all those numbers; they are rising, but not necessarily thriving.
The one thing standing in the way of a more robust housing recovery, is tight credit. Mortgage rates are at near-historic lows, but too many potential home buyers still cannot access these rates due to damaged credit.
A jump in signed contract to buy newly built homes in September brought volumes to the highest level since April of 2010. Is it enough to put a period on the statement that housing is in full recovery? Perhaps, but not an exclamation point.
It’s hard to imagine, given that the nation’s housing market is still digging itself out of an epic foreclosure crisis, that there just are not enough homes available to buy. But, that may be the case.
NEW YORK-- The shares of at least four homebuilders hit new highs and construction materials companies got a boost as well Wednesday from the release of a new report showing that U.S. builders started construction on homes in September at the fastest rate since July 2008, another sign of a recovering housing market.
Oct 11- Beazer Homes USA Inc:.
Oct 10- Buzzi Unicem SpA:. *UBS raises Buzzi Unicem price target to 8.6 euros from 7.4 euros; rating sell. Reuters Station users, click. 1580.
Real estate is and always will be local, and this recovery is becoming increasingly local. That is clear in the latest numbers on supplies of distressed homes.
NEW YORK-- Shares of homebuilders climbed on Wednesday as recent data continues to point to signs that the housing market is making a sustained comeback. Sales of new homes remained near a two-year high in August, the government said last week.
*Credit Suisse cuts PulteGroup Inc to neutral from outperform. *Credit Suisse raises PulteGroup Inc price target to $15 from $12.50. *Credit Suisse cuts MDC Holdings Inc to underperform from neutral.
The government has been pushing more short sales at Fannie Mae and Freddie Mac through financial incentives, and banks are streamlining the process. But all the progress that has been made could end abruptly.
In a dismal summer for economic stats, housing continues to be the bright spot.
Stocks closed higher in choppy trading Tuesday, wiping out the previous session's declines, thanks to better-than-expected earnings reports and as investors remained hopeful that the central bank may still be open to further easing.
Take a look at some of Wednesday’s morning movers:
Take a look at some of Tuesday’s morning movers: