As the housing industry continues its rise back to pre-recession levels, it may be time for investors to pick up shares of U.S. home builders, reports Philip van Doorn, investing columnist for MarketWatch.
Mortgage rates are still at record lows, which have contributed to the rise in housing starts in recent years. On Monday, Tim Mullaney considered which areas of the stock market might be undervalued because of overreactions by investors afraid of a recession. He said home builders were “already moving, limiting your upside while validating the idea that this is a good bet.” In other words, you may have to move quickly and snap up shares now.
According to the National Association of Home Builders, U.S. housing starts increased 11% last year, following an 8% gain in 2014. The NAHB expects housing starts to rise another 10% this year, accelerating to 18% in 2017.