We got another poor housing report today. Sales of new homes fell last month which was a bit of a surprise since Wall Street was expecting a rise. Sales dropped 3.6% to an annualized rate of 402,000. Over the past year, the median price of a new home dropped 9.1%. This comes on the heels of yesterday’s Case-Shiller report which showed that the housing market is still in pain.
This continues to be a problem area for investors so if you have any housing stocks, you must watch them carefully. I recently highlighted seven housing stocks that investors ought to sell including Toll Brothers (TOL) and Masco (MAS).