The Recovery We've Been Waiting For

Today's Headline on Wall Street Journal - "New Home Sales Jumped 11% in June From May". For the past two years the entire world economy had almost collapsed and it all started with the bubble bust of the US housing market. Finally there seems to be the light at the end of the tunnel as new-home sales has been up for the past three consecutive sessions. And how real is this recovery? Compare to May the new home sales were up 11% in June, better than economists estimates of just 2.3%.

And how about the home builders? Price of KB Home (KBH) is up 4.38% this morning and has gained almost 30% in one month. Lennar (LEN) gained 7.38% so far and has also gained 30% for the month. D. R. Horton (DHI) gained 2.7% while Centex (CTX) gained 6.58%. Winner so far today is Hovnanian Enterprises(HOV) which gained 10.18%. Time to jump into the home builders?Maybe.