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With the housing market gaining momentum, most homebuilding companies including The Ryland Group Inc. (RYL - Snapshot Report) are investing in building more homes to meet the growing demand. Recently, the national homebuilder unveiled town homes at Somerton Valley in Bensalem, Pa.

Priced from $200,000 onwards, the much-awaited 3-story townhomes include 3 bedrooms, 2½ baths, large kitchen and a desirable 2-car garage. The company is confident that its town homes are reasonably priced.   

Homebuyers in Bensalem will be able to enjoy the new features and floorplans at Somerton Valley with its open, airy layouts. The community is close to the Philadelphia metro region. Also, popular shops, schools and restaurants and entertainment destinations like Parks Casino are located nearby. Residents will also have easy access to major transportation routes.

Last month, Ryland Group posted third quarter of 2013 results with earnings of 95 cents per share. Earnings were in line with the Zacks Consensus Estimate, but improved significantly from the year-ago earnings of 21 cents driven by top-line growth and margin expansion.

Total revenue of $576 million lagged the Zacks Consensus Estimate by 3.4%, but climbed 60.7% year over year, driven by new order growth and increase in home closing owing to improved market conditions.

Ryland Group carries a Zacks Rank #3 (Hold). Other stocks in the construction sector that are performing well and deserve a mention include M/I Homes Inc (MHO - Snapshot Report), Meritage Homes Corp. (MTH - Snapshot Report) and KB Home (KBH - Analyst Report). While M/I Homes has a Zacks Rank #1 (Strong Buy), Meritage Homes and KB Home carry a Zacks Rank #2 (Buy).

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