Judging from the latest economic news, we could very well be on the cusp of another big shift for the housing market. Just take a look at these headlines:
U.S. Home Prices Jump 13.3% in September
According to data released from the S&P/Case-Shiller Home Price Indices, 20 major metro areas saw single-family home prices jump the most since February 2006. Compared with September 2012, prices rose 13.3%; compared with August 2013, prices advanced 0.7%. Average home prices are now back tho around where they were in 2004.
Building Permits Break One Million
In October, permits for future home construction rose 6.2% to a seasonal rate of 1.03 million. This is the highest level since June 2008 and positively trounced economists’ expectations for a 930,000 rate. Permits for multifamily units surged 15.3% while single-family home permits rose 0.8%.
What This Means For Wall Street
This means that it’s time to get buying quality stocks that profit from the rebound in home construction and prices. I’m talking about homebuilders, real estate management firms, building material suppliers and home improvement stores. To get you started, I’ve isolated the top-rated 15 housing related stocks in PortfolioGrader right now.
For those of you who follow my newsletters, some of these names may sound familiar to you. In my Emerging Growth newsletter, we added one of these companies back in August 2012 and currently have nearly a 140% return on this position. Another one of these stocks is currently on my exclusive Ultimate Growth Buy List—we’ve seen this stock surge nearly 90% since we recommended it in late March.
I consider those two stocks to be the best buys of the 15—hands down. But with solid fundamental grades and strong buying pressure backing up these stocks, all have the makings of compelling investing opportunities.