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2 Under-the-Radar Housing Stocks With Market-Beating Potential
The housing sector has struggled in recent years as high interest rates and the lock-in effect of low mortgage rates during the pandemic have put pressure on home sales.Existing home sales have hovered around 4 million since the start of 2023, about 30% below where they were before the pandemic, but there is a silver lining for homebuilders and others in the sector who benefit from housing activity. There's a significant housing shortage in the country, and while estimates vary, Realtor.com believes national supply is 3.8 million homes below demand. It would take homebuilders 7.5 years to make up for that. There's a huge backlog, in other words, for new home demand, and though it may take a change in zoning laws, interest rates, or public policy, that demand is likely to be tapped eventually.Continue reading
The housing sector has struggled in recent years as high interest rates and the lock-in effect of low mortgage rates during the pandemic have put pressure on home sales.
Existing home sales have hovered around 4 million since the start of 2023, about 30% below where they were before the pandemic, but there is a silver lining for homebuilders and others in the sector who benefit from housing activity.
There's a significant housing shortage in the country, and while estimates vary, Realtor.com believes national supply is 3.8 million homes below demand. It would take homebuilders 7.5 years to make up for that. There's a huge backlog, in other words, for new home demand, and though it may take a change in zoning laws, interest rates, or public policy, that demand is likely to be tapped eventually.
