Lennar, DR Horton, PulteGroup: Watch These Homebuilder Stocks As Trump Teases Plan To Scrap Capital Gains On Home Sales
Synopsis
Such a move would boost the housing sector, which has been weighed down in recent years by high inflation and economic uncertainty.
President Donald Trump indicated on Sunday that he is considering eliminating capital gains taxes on home sales, which could be a catalyst for housing and related stocks as the new week begins.
In response to a reporter's question on the subject, he said, "We're looking at that, and it could be a very big positive." Trump reshared a short clip of his News Nation interview on his Truth Social account.
If enacted, the plan could deliver a significant boost to the housing sector, which has been weighed down in recent years by high inflation and economic uncertainty keeping buyers on the sidelines.
Investors will likely sharpen their focus on U.S. home builders Lennar Corp, D.R. Horton, and PulteGroup, as well as online real estate platforms such as Zillow Group, Redfin, and Rocket Companies. Opendoor stock, which has risen significantly in recent months, could also experience a reaction.
On Stocktwits, the retail sentiment was 'bearish' for Lennar, Zillow Group, Rocket Companies, and Opendoor, 'extremely bullish' for D.R. Horton, and 'neutral' for PulteGroup and Redfin.
Year-to-date, D.R. Horton and PulteGroup shares are up 18% and 19%, respectively, while Lennar stock is down 5%.
To be sure, this isn't the first time Trump has discussed the idea. In July, Trump said he was "thinking about" it, with his comments seen as support for U.S. Representative Marjorie Taylor Greene's "No Tax on Home Sales Act."
The bill, which has been referred to a House committee, aims to amend the Internal Revenue Code to extend the rebate on capital gains taxes on home sales.
As per the current law, profits of $250,000 (and $500,000 for married couples) on the sale of the owner's primary house are exempt from capital gains.
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