Time To Look At Home Builders?

The latest new home sales that were reported on March 24, 2015 provided a positive outlook for the housing market. The February annualized rate of 539,000 is the highest since May of 2008. In addition, the January number was revised upward from 481,000 to 500,000. Also cited in the report is the existing home inventory is down to 4.7 months, which is the lowest since June 2013. Is it time to start looking at the home builders stocks?

Here are three home builders: TOL, DHI, and PHM that have shown a long period of price consolidation, and they appear to be at a potential breakout level that could possibly move to retest the pre-housing crisis high.

TOL

(click on the chart to enlarge)



DHI




PHM




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