Standard Pacific Corp. (SPF)

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Economists Forecast 5.2% Sequential Home Sales Growth In March
On Thursday April 22, 2010, 8:57 am EDT

Homebuyers are running out of time to take advantage of government incentives, and that's led to a pickup in activity as the April 30 deadline approaches. According to the Associated Press, economists are expecting the National Association of Realtors to report that 5.28 million previously occupied homes were sold in March, a 5.2% increase over February.

Investors also appear optimistic for new home sales, sending the Homebuilder Stocks Index higher by 9.4% over the past month. Hovnanian Enterprises (NYSE: HOV - News), Standard Pacific (NYSE: SPF - News), and Beazer Homes (NYSE: BZH - News) have led the rally with gains of 30% or more.

Peripheral plays on the homebuyer tax credits could also benefit from an eleventh-hour rush to take advantage of incentives. The Home Improvement Retail Stocks Index has surged higher by 17.3% in the last month, though giants Home Depot (NYSE: HD - News) and Lowes (NYSE: LOW - News) are among laggards, gaining less than 10%.

Meanwhile, Pier 1 Imports (NYSE:PIR - News), Kirkland's (NASDAQ: KIRK - News), and Williams Sonoma (NYSE: WSM - News) have led the Home Furnishing Retailer Stocks Index with double-digit, one-month spikes. As a whole, the Index is now outperforming the S&P 500 by more than 15% for the period.