Housing exchange traded funds were in the red Wednesday after the National Association of Realtors said U.S. existing home sales rose last month but revised December’s figures significantly lower.
Existing home sales rose to an 18-month high in January. [Housing ETFs Rise with Builder Confidence]
“However, the tenor of the report was weakened somewhat by a sharp downward revision to December’s sales data to show only a 4.38 million-unit rate rather than the previously reported 4.61 million-unit pace,” Reuters reported.
“That followed an annual revision of the seasonal factors for the series going back three years,” it added. “Sales in December actually fell 0.5% from November, instead of the 5% increase reported last month.” [Why Homebuilder ETFs are Holding Their Own]
Builder ETFs have stumbled this week but are outperforming the market in 2012 on hopes the housing market is finally on the mend. Through Feb. 21, iShares Dow Jones U.S. Home Construction Index Fund doubled the return of the S&P 500 with a 17.4% year-to-date gain, according to Morningstar.
SPDR S&P Homebuilders
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