Homebuilder stocks drop after report on weaker order trends

Real Estate

Homebuilders stocks are falling after a report from a housing market research firm.

Zelman & Associates sent a note to its clients before the market open Wednesday, saying housing orders were seasonally weaker than normal, a person familiar with the report said.

Shares of KB Home, D.R. Horton, Tolls Brothers and Lennar all fell by more than 4 percent Wednesday.

Zelman & Associates was founded in 2007 by Ivy Zelman. The firm surveys industry executives with housing market expertise to generate proprietary research for institutional investors and corporate executives. The founder is known for her prescient predictions such as calling the housing peak in 2005 and the housing bottom in 2012.

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