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.
|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.
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|DHI||DR HORTON INC.||109.65||+2.69||+ 2.52%|
The most weighted stocks in the ETF include DR Horton, Lennar Corporation and NVR.
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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.
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.
|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.