Homebuilding stocks are showing oversold signals after sustained selling pressure this year, with Pantheon Economics saying there is "no relief in sight" for homebuilders' stock prices as higher mortgage rates, weakening affordability and elevated inventories weigh on the sector. A screen of homebuilding stocks based on their Relative Strength Index identifies 11 names with the lowest readings, led by Installed Building Products with an RSI of 34, Dream Finders Homes at 35 and KB Home at 37. The broader weakness has been significant: Pantheon Economics noted that the Dow Jones US Select Home Construction Total Return Index underperformed the S&P 500 Total Return Index by 23 percentage points in both 2024 and 2025, and this year the homebuilders index is down 5% on a total-return basis compared with a 14% gain for the S&P 500. Pantheon said recent new-home sales data offers limited evidence of improvement, with July sales revised up to 643,000 from 607,000 previously and August sales preliminarily estimated at 684,000, an eight-month high, though the firm cautioned the August estimate carries a 90% confidence interval of plus or minus 20 percentage points around the reported 6.4% increase. The NAHB survey's expected single-family home sales index fell to 37 in September from 43 in August, its lowest level since January 2023, and builders have already been cutting prices, with the median price of a new single-family home down 2.6% year-over-year in the three months through August, while at the current pace of sales it would take about 8.5 months to clear existing unsold inventory versus a 60-year average of six months.
BOXABL Inc.
Dream Finders Homes Inc
Hovnanian Enterprises Inc
Installed Building Products Inc
KB Home
LGI Homes
M/I Homes Inc
Meritage Corporation
PulteGroup Inc
Smith Douglas Homes Corp.
Toll Brothers Inc