NEW YORK (AP) — Homebuilder stocks got a boost Tuesday from a report showing a year-over-year drop in number of home foreclosures and a reduced rate in pending actions.
According to the report from real estate data provider CoreLogic Inc., the number of completed foreclosures fell 27 percent from year-ago levels to 52,000 in May. But foreclosures rose 3.5 percent compared with April 2013.
Meanwhile, foreclosure inventories — or the number of homes in some stage of foreclosure — dropped 29 percent from year-ago levels. Compared with April of this year, foreclosure inventories fell 3.3 percent.
A reduced number of foreclosures is positive for homebuilders because it will improve the overall climate for home sales. May marked the 19th consecutive month with a year-over-year decline.
The report noted that despite the drop, foreclosures still remain well above where they were before the housing bubble burst. Between 2001 and 2006, completed foreclosures averaged 21,000 per month nationwide.
Since the housing crisis began in 2008, a total of 4.4 million foreclosures have been completed, CoreLogic said.
Here's how shares of some homebuilders were trading Tuesday:
— DR Horton Inc., up $1.54, or 7.8 percent, to $21.27.
— M/I Homes Inc., up $1.58, or 7.2 percent, to $23.39.
— KB Home, up $1.15, or 6.5 percent, to $18.83.
— The Ryland Group Inc., up $2.27, or 6.1 percent, to $39.48.
— Lennar Corp., up $1.99, or 6 percent, to $35.04.
— MDC Holdings Inc., up $1.82, or 6.2 percent, to $31.33.
— PulteGroup Inc., up $1.06, or 5.9 percent, to $19.12.
— Hovnanian Enterprises Inc., up 25 cents, or 4.7 percent, to $5.53.
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