The home construction sector experienced a significant surge into record-breaking territory on Tuesday following a surprise increase in new home sales for May, surpassing initial expectations of a slight decrease. The iShares U.S. Home Construction exchange-traded fund (ETF) ITB (+2.02%) surged 1.9% during morning trading, with all 48 of its equity components trading higher. The ITB was trading above its existing record closing price of $83.04, which was set on Dec. 10 2021.
Active homebuilder shares representing the sector’s biggest and most popular brands experienced significant gains in response to the increase in new home sales data. D.R. Horton Inc.’s stock (DHI, +1.91%) soared 1.7%, Lennar Corp.’s shares (LEN, +2.42%) rose 2.1%, PulteGroup Inc.’s shares (PHM, +2.01%) tacked on 1.8%, and Toll Brothers Inc.’s stock (TOL, +1.92%) rose 1.7%. All four of these popular homebuilders are expected to reach their record closes. Additionally, KB Home’s stock (KBH, +1.47%) in particular saw a 1.6% rise.
This gradual yet continuous rise in equity points towards an overall optimistic outlook and showcases an upward trend in the home construction sector.