TheStreet's staffer Than Merrill takes on 2016 housing market forecasts, based on four metrics: millennials, boomers, mortgage rates, and homebuilder confidence. The result, as he puts, are better than the average consumer probably thinks. Merrill writes:
"More than seven years after one of the worst recessions in American history, the U.S. housing market appears to be on firm ground again. Despite some hiccups, it is likely that it will carry the momentum it gained this year into next.
The huge millennial population is going to be buying more homes. So-called boomerang buyers who lost their homes in the Great Recession are returning and the conditions for attaining a decent mortgage and a home at a reasonable price look solid."
Merrill also predicts stocks likely to benefit from housing growth in 2016. Lowe's (LOW) performance over the past year (and its appeal to both individual consumers and professional companies) make it a solid investment choice, according to Merrill. Surprisingly, Merrill also thinks Restoration Hardware (RH) stock would be a good investment. Although Restoration Hardware serves a niche market, they've created two new businesses in the past year, and as the housing market continues to thrive, Merrill predicts their new targeted initiatives will as well.