Housing activity is a function of several factors: Rates, the overall economy, supply, population growth, rental prices, sentiment, speculation, liquidity (easy financing terms, loans, mortgages) Over the past 5 years, rates dropped, supply expanded, population expanded, prices rose. That’s normal. But then rates plummeted even further, prices rose more quickly. That is where we saw crazy boom. Now that we are seeing inflation problems, the Feds have raised rates and that is why we are seeing drop in prices.
Lets have a look at few interesting facts about housing/real estate.
With all these bad news i recommend staying away from housing stocks. If you really love real-estate learn more about REIT.
I will post more about REIT soon. This could also mean a good time to jump into buying a house as an investment in growing cities which is expected to see boom in the near future.
Recommendation: These are few of the stocks I follow and recommend to keep away from it or think about shorting them. HSOA, RSTO, BLDR, BECN, FUR, TOL