PulteGroup Inc. ( PHM ) recently held a
ground breaking ceremony at the Carolina Arbors community in the
city of Durham, N.C. The community will have 1,275 single family
ranch homes constructed under its brand Del Webb. The prices range
from mid $190s to mid $300s.
Eleven designer model homes are expected to be complete by
summer 2013. These are targeted toward residents aged 55 and older.
The residents can enjoy easy access to facilities like boating,
hiking, shopping centers, and restaurants. The residents can choose
from various single story floors plans, with 2-car garage, spacious
rooms and a living space, walk in master suite closets, and loft
The rising demand for new homes has led to a favorable situation
in the housing market, where inventory levels are dropping and
prices are moving up. As such most home building companies are
constructing increased number of new homes in order to maintain the
required level of inventory to meet the growing demand.
Homebuilders like Pulte with significant land positions, broad
geographic and product diversity, and better capital positions are
expected to benefit the most as market conditions recover.
Pulte had announced its plans to spend 1 billion on land and
land development in 2012, $90 million higher than prior
expectations of approximately $910 million.
PulteGroup carries a Zacks Rank #3 (Hold).
Stocks in the homebuilding sector that look attractive at
current levels include NVR, Inc. ( NVR ), The
Ryland Group, Inc. ( RYL ) and D.R.
Horton Inc. ( DHI) . While NVR carries a
Zacks Rank #1 (Strong Buy), The Ryland Group and D.R. Horton both
hold a Zacks Rank #2 (Buy). D R HORTON INC (DHI): Free Stock Analysis
ReportNVR INC (NVR): Free Stock Analysis ReportPULTE GROUP ONC (PHM): Free Stock Analysis
ReportRYLAND GRP INC (RYL): Free Stock Analysis
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