By Dhirendra Tripathi
Investing.com – Shares of home building companies were trading weaker Monday as the latest data showed that sales of single-family homes in the U.S. fell in June.
New home sales fell 6.6% to a seasonally adjusted annual rate of 676,000 units last month, the lowest level since April 2020, according to a release by the Commerce Department. May's sales were revised to 724,000 units from the previously reported 769,000. Sales have now fallen for three consecutive months, Reuters reported.
This comes after expensive building materials and a booming market took housing prices to 30-year highs.
This happened because the economy expanded and working from home went mainstream. People looked for permanent, bigger and more suitable housing. Low interest rates did their bit to fuel demand.
TRI Pointe (NYSE: TPH ) stock was a rare exception, gaining 0.2% because of the still-positive sentiment about the July 22 announcement of its second-quarter results.
Net income more than doubled to $117.9 million, or $1 per diluted share, compared to $56.5 million, or 43 cents per diluted share from the same quarter a year ago.
Tri Pointe home sales revenue was $1 billion compared to $766.9 million, an increase of 32%.
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