Published:  01:20 AM, 16 July 2017

US housing stocks may not be on terra firma

US housing stocks may not be on terra firma Traders work on the floor of the New York Stock Exchange (NYSE) in New York, US. -Reuters

Investors may have overbuilt US housing stocks as data has yet to match up with the homebuilder sector's biggest rally in five years. The S&P 1500 Homebuilding index of homebuilder companies has surged 32 percent this year and hit a decade-high earlier this week. By contrast, the wider S&P Composite 1500 Index .SPCOMP has gained less than 9 percent.

Housing optimists are pinning their bets on strong US job creation, low interest rates, tight housing supply, robust earnings estimates and a lack of recessionary red flags. Some investors still see opportunities, but others warn the stocks may have run too far.

-Reuters


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