”We continue to believe the drivers are in place to sustain the current housing market’s slow but steady growth,” Robert Toll, executive chairman of luxury home builder Toll Brothers Inc., said.
Contributing the rise in home prices, low housing inventories have limited the overall market. The inventories of new homes tightened in April. Given the current sales pace, it could take 4.7 months to exhaust the supply of newly built homes, compared to a projected 5.5 months for the prior month.
Further fueling the rally in homebuilders, the Toll Brothers (NYSE: TOL) revealed quarterly revenue surged 31% on luxury home sales, beating analysts’ estimates, Reuters reports.
TOL shares jumped 7.8% Tuesday. TOL makes up 5.9% of ITB’s underlying portfolio and 4.2% of XHB.
For more information on the housing market, visit our homebuilders category.
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