Unemployment, end of stimulus programs could upend gains
By Dina ElBoghdady
Washington Post Staff Writer
U.S. home builder stocks surged Wednesday, invigorated by Toll Brothers’ announcement earlier this week that orders for its homes have jumped during the latest quarter, outpacing expectations.
Shares of Los Angeles-based Toll jumped more than 16 percent, to close Wednesday at $21.41. Other builders that issued upbeat reports this week, Atlanta-based Beazer Homes and Reston-based Comstock Homebuilding Cos., also got a boost. Beazer shares climbed 12.4 percent to $5.73. Comstock shares rose 7.1 percent to close at 90 cents.
The companies’ reports are the latest sign of stabilization in the nation’s battered housing market, but swelling unemployment and related foreclosures could upend the gains.
The building sector appears to be benefiting from an uptick in buyers lured by low interest rates, low home prices and an $8,000 tax credit that’s been available since early last year, experts who track the industry said. The builders have whittled down their supply of homes, which helps set them up for a rebound.
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