Home Construction ETF hits record high as real estate explodes


The iShares Home Construction exchange-traded fund hit a new 52-week high this week and is poised to rise even further amid strong consumer demand for new and existing homes.

Teleprinter Security Last Change Change %
ITB ISHARES HOME CONSTRUCTION ETF TRUSTS US 83.04 +1.20 +1.46%

The ETF, which currently provides investors with exposure to 46 US companies that make residential homes, has risen more than 40% this year and manages more than $ 3 million in assets.

TOLL BROTHERS POSTS A STRONG QUARTER

Teleprinter Security Last Change Change %
DHI DR HORTON INC. 109.65 +2.69 + 2.52%
LEN CORP. 116.91 +1.37 + 1.19%
NVR NVR INC. 5,935.72 +72.20 +1.23%

The most weighted stocks in the ETF include DR Horton, Lennar Corporation and NVR.

TOLL BROTHERS RECOGNIZES 20% GROWTH IN 2022 AMONG STRONG DEMAND

Despite the low level of inventories and rising house prices, sales of existing homes rose 0.8% in October at a seasonally adjusted rate of 6.34 million units, the fastest pace since January, while pending house sale, which tracks the number of homes under contract for sale, rose 7.5% to 125.2 in October.

Despite low inventories and rising house prices, sales of existing homes rose 0.8% in October to a seasonally adjusted rate of 6.34 million units, the fastest pace since January, while pending home sales, which track the number of homes under c (Michael Conroy / AP Newsroom)

The median price of existing homes in October jumped 13.1% year-over-year to $ 353,900, marking a record 116 consecutive months of year-over-year increases. The median price of existing single-family homes jumped 13.5% year-on-year to $ 360,800 in October, while the price of existing condominiums rose 8.7% year-on-year to $ 296,700.

The total housing stock in October fell 0.8% month over month and 12% year over year to 1.25 million units. The unsold inventory, which represents a supply of 2.4 months at the current selling rate, remains unchanged from the previous month and is down from 2.5 months a year ago.

First-time buyers accounted for 29% of existing home sales in October, down from 28% in September and down from 32% in October 2020, while individual investors or second home buyers bought 17% of homes in October, compared to 13% in September and 14% in October 2020.

National Association of Realtors Chief Economist Lawrence Yun Says Job Growth Continues, Stock Market At All-Time Highs and Rising, But Mortgage Rates Still Historically Low Help Boost Home Sales .

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The iShares Home Construction ETF is not the only fund to see momentum, as the SPDR Homebuilders ETF, the Invesco Dynamic Building & Construction ETF and the Direxion Daily Homebuilders & Supplies Bull 3x ETF have also recently flirted with records.

Teleprinter Security Last Change Change %
XHB SPDR SERIES TRUST SPDR S&P HOMEBUILDERS ETFs 86.27 +0.79 + 0.92%
PKB INVESCO EXCHANGE TRADED FD TR BLDG & DYNAMIC CONSTRUCTION 53.93 +0.29 + 0.54%
NAIL DBX ETF TRUST DIREXION DAILY HOMEBUILDERS 125.91 +5.33 + 4.42%

ETFs are up 51%, 34.6% and 179.6% respectively this year at the time of publication.