New Home Sales Tumble

Just another sign of a cooling real estate market: sales of new homes tumbled 11% in November which is the biggest drop in more than a decade. Clearly an indication that real estate will begin to moderate to normal levels. As a result, TOL (Toll Bros.) down 1%, DHI (DR Horton) down 2%, PHM (Pulte) down 2%...I would expect to see downward pressure in these stocks over the next 12 months as home inventories increase due primarily to higher interest rates.  Owners of these stocks that are holding onto gains from the past couple years should book profits now and move on...