Homebuilding exchange traded funds (ETFs) are up this morning, while the cost of buying a home in the United States have posted a record drop.
Prices fell 4.8% in May from the same month in 2007, reports the Associated Press. It’s the largest-year-over year decline in the history of the data, as the twelfth time in the last 13 months prices have fallen off, according to Rex Nutting for MarketWatch.
These prices are from the Office of Federal Housing Enterprise Overisght (OFHEO). Next week, the Case-Shiller price index will be released. Many analysts believe the true value of home prices is somewhere between Case-Shiller and OFHEO.
Up by as much as 3.5% in trading today are:
- iShares Dow Jones US Home Construction (ITB): down 16% year-to-date
- SPDR S&P Homebuilders (XHB): down 11.7% year-to-date
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.