Published:  01:20 AM, 16 July 2017

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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