Two major homebuilder ETFs (exchange-traded funds) closed today at their highest levels since July 2007, almost five and one-half years ago, as the housing sector recovers and “continues to lead the U.S. stock market higher in 2012.” The blue line in the chart above shows the SPDR S&P Homebuilders ETF (XHB), which closed today at 26.89, the highest closing value since July 23, 2007. Year-to-date, the index is up by almost 52%. The red line in the chart above shows the iShares Dow Jones US Home Construction ETF (ITB), which is up 77% year-to-date and closed today at 21.45, the highest closing price since July 16, 2007. In contrast, the S&P500 Index is up by 13.3% this year.
The homebuilder ETFs were boosted today after the NAHB reported this morning that homebuilder confidence rose in December for the eighth straight month to its highest level since April 2006. Evidence continues to mount that a recovery in the U.S. housing market is now underway, and the recovery continues to gain momentum with every new positive report.