Dive Brief:
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Big builder D.R. Horton sold more homes than any other residential construction company between 2010 and 2013, when home sales increased by 33% across all builders, according to financial services firm The Motley Fool.
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The 10 largest U.S. builders sold about a quarter of all those new homes, the firm reports. Along with D.R. Horton, those top builders are: Lennar Group; PulteGroup; NVR; KB Home; Ryland Group; Meritage Homes; Taylor Morrison, Hovnanian; and Beazer Homes, according to Bloomberg.
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The Motley Fool report notes: “The key to investing in the sector is buying into which company is building houses at the right time.”
Dive Insight:
The Motley Fool, which advises investors, says the stock prices of publicly owned home builders have risen according to how aggressively they have built houses over the past three years, making them a good pick for stockholders who are “bullish” on house prices. But value investors are likely to hold off on buying home builder shares while the stock prices are high.