Housing stocks rose across the board Thursday, defying a bevy of industry and corporate data that showed the housing market continued to erode in the first part of the year.
Most major builders added at least 2 percent in midday trading. Lennar Corp. led the gainers with a 6 percent jump to $17.99. D.R. Horton Inc. and KB Homes each added 2 percent.
The gains came on a day when the Commerce Department reported that sales of new homes plunged in March to the lowest level in 16 1/2 years _ right in time for the start of the spring sales season.
The median price of a home sold in March dropped 13.3 percent compared with March 2007, the biggest year-over-year price decline since a 14.6 percent plunge in July 1970
Earlier in the week, an industry association reported sales of existing homes fell sharply in March after breaking a losing streak in February. That squashed hopes that the housing market may have reached its bottom after more than two years of decline.
In company news, MDC Holdings reported a narrower first-quarter loss after cutting expenses. It took an impairment charge of $54.8 million related to declining home prices. That was much lower than the $175 million in the previous quarter.
JPM analyst James Wilson reiterated his "Market Outperform" rating on the shares, saying the lower charge was a "positive note."
MDC shares rose $1.25 to $44.73 in midday trading.
Late Wednesday, Pulte Homes Inc. reported a wider quarterly loss after taking $663.6 million in charges.
The difficult housing environment continued to erode during the first quarter of 2008," Richard J. Dugas Jr., president and chief executive, said in a statement.
Pulte shares rose 51 cents, or 3.9 percent, to $13.61.
Ryland Homes also reported a wider first-quarter loss on Wednesday, citing higher selling costs and a drop in sales. Its shares rose $2.06, or 6.4 percent, to $34.40.
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