Dive Brief:
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Publicly traded homebuilders are having a good week on Wall Street.
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Third-quarter revenue had a 29% surge for luxury builder Toll Brothers, and combined with positive numbers from big builders D. R. Horton, Pulte, and Lennar, gave a boost for homebuilder values as the stock market finished at an all-time high on Tuesday.
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The numbers apparently have impressed investors, who had already taken notice of a 17.8% increase in housing starts in September and big builder plans to increase inventory in anticipation of continued demand for single-family homes.
Dive Insight:
Homebuilder stock values have bounced up and down during 2014, much like housing starts and home sales. So as impressive as big builder spreadsheets looked at the end of the third quarter, more fluctuation is likely as the housing economy continues to regain its footing.
Still, economists are predicting a strong spring selling season, leading some analysts to forecast a boost for investors who have the stomach for the ride.