Home Builders See Gains Amidst Declining Foreclosures

Despite the recent decline in foreclosures, home builders saw a good activity in Wall Street.

Several giant home-building firms gained stock increased during Tuesday’s trading session. The bounce bode well for many as several areas of the country are seeing tremendous activities in home construction, and rightly so since the inventory shortage still looms several markets.

The rally happened amidst news of foreclosure rate decline. Several foreclosed homes have started to enter the market again as foreclosure process in many areas of the country were significantly lessened. Though this might not serve well for the builders’ bottom line, the overall effect can contribute to a healthy housing market.

The surge in building activities during the early parts of 2013 caused quite a stir for many as fears of a new bubble forming were renewed. Yet even with several pre-construction projects, the overall housing market atmosphere remain stable and its recovery is maintaining its steady pace.

Institutional buyers were also among the concerns. These deep-pocketed buyers flooded the market, grabbing homes and out-bidding regular Joes. Yet with the increasing prices, these buyers may start to slowly exit the market and even sell some of their properties.