Upbeat August Existing Home Sale Data Lift Home-Construction Stocks

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Published September 19, 2013

| FOXBusiness

August was a good month for home sales as buyers rushed in before borrowing costs rose any higher.  Existing home sales jumped 1.7% to a seasonally adjusted annual rate of 5.48 million last month, the highest since February 2007. Economists surveyed by Thomson Reuters expected a 2.6% decline to 5.25 million.

The national median existing home price was $212,100 in August, up 14.7% from August 2012 and the largest annual gain since a 16.6% jump in October 2005.  

August marked the 18th consecutive month of year-over-year price increases.  The current price of $212,100 is just slightly below June's $214,000 figure, which was the highest since June 2008.

The total inventory of existing homes for sale rose 0.4% in August to 2.25 million.  That works out to a 4.9-month supply at the current rate of sales, and is down from July's 5.0-month supply figure.  Listed inventory is 6.0% below last year's level, when there was 6-months of supply.

Buyers of previously-owned homes typically do upgrades such as remodeling, replacing carpets, cabinets, plumbing fixtures, etc. Therefore, August's upbeat existing home data are helping to give a boost to companies that make or sell the “stuff” that goes into a home. 

The following 19 stocks are up an average of 1.10% today while the S&P 500 is flat. For 2013 these stocks have rallied 28% on average, outpacing the 21% return in the S&P.

 

Company

Business

(USG)

USG Corporation

Gypsum wallboard

(LPX)

Louisiana-Pacific Corporation

Plywood, Oriented Strand Board

(LOW)

Lowe's Companies, Inc.

Home improvement retailer

(BECN)

Beacon Roofing Supply, Inc.

Asphalt shingles, tiles

(JHX)

James Hardie Industries ADR

Fiber cement products, wallboard

(LL)

Lumber Liquidators Holdings, Inc.

Hardwood flooring

(MAS)

Masco Corporation

Plumbing fixtures, cabinets

(HD)

The Home Depot, Inc.

Home improvement retailer

(OC)

Owens Corning

Insulation, roofing shingles

(LZB)

LaZBoy Incorporated

Home furnishings

(WY)

Weyerhaeuser Company

Lumber, plywood sheeting

(VAL)

The Valspar Corporation

Paints & coatings

(WHR)

Whirlpool Corporation

Household appliances

(VMC)

Vulcan Materials Company

Concrete & asphalt

(MHK)

Mohawk Industries, Inc.

Flooring: carpets, tiles, laminates

(LII)

Lennox International Inc.

HVAC, residential cooling & heating

(EXP)

Eagle Materials Inc.

Sheetrock, wallboard

(SHW)

The Sherwin-Williams Company

Paints & coatings

(GNRC)

Generac Holdings Inc.

Electric generators

 

URL

http://www.foxbusiness.com/economy/2013/09/19/upbeat-august-existing-home-sale-data-lift-home-construction-stocks/