Sales of newly built homes came in far weaker than expected for November, and builder stocks are not taking it well. Shares of the biggest names, such as Lennar, Pulte, DR Horton and Toll Brothers, dropped more than 2% on the news.
New home sales fell a steeper-than-expected 11% in November from October, according to the U.S. Census.
October’s reading was also revised lower. Sales hit an annualized rate of 841,000, down from the 979,000 peak in July. These numbers are based on contracts signed, not closings. Sales were up 20.8% year over year.
The pullback may be due to prices, which have been rising steadily. The median price of a newly built home rose 2.2% compared with November 2019, to…