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People Never Learn - "Bidding Wars in Housing Start Up Once Again"



April 04, 2013 – Comments (0) | RELATED TICKERS: XHB , ITB , PKB

A house goes up for Sale at 459k, first open house not only does it get sold at a higher price on same day but it also had 15 bidders on it.

Sounds a lot like the start of 2005 all over again, we know what happened in 2007.


S&P Bearish on Home Builders ETF


By Benzinga,  January 30, 2013, 04:55:34 PM EDT  

ITB's top-five holdings are PulteGroup (NYSE: PHM ), Lennar (NYSE: LEN ), DR Horton (NYSE: DHI ), Toll Brothers (NYSE: TOL ) and NVR (NYSE: NVR ). Combined, those stocks represent approximately 45.5 percent of ITB's weight.

Ryland Group (NYSE: RYL ), MDC (NYSE: MDC ) and KB Home (NYSE: KBH ) are the other homebuilders featured among ITB's top-10 holdings. That trio represents 10.5 percent of ITB's weight. Souers has sell ratings on KB Home and Pulte.

"We think the housing market will improve over the next year, but shy of consensus views for stronger growth. Souers also thinks it will take time before buyers' confidence and the job market improve enough to support a more favorable view of home ownership," according to S&P Capital IQ.

The research note did not mention ITB's primary rival, the SPDR S&P Homebuilders ETF (NYSE: XHB ). In the past year, XHB has returned over 53 percent and the ETF was up 6.6 percent heading into Wednesday's trading session. With $2.66 billion in assets under management, XHB is larger than ITB, but the SPDR offering is not as heavily allocated to homebuilder equities.

While six such names, including D R Horton, Pulte, Ryland and Toll Brothers, are featured among XHB's top-10 holdings, those companies are not as prominent in XHB as they are in ITB. The six homebuilders in XHB's top-10 lineup combine for just 22.5 percent of the ETF's weight.

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