The severe winter weather may have put a damper on things, but the U.S. housing market has been remarkably resilient in the face of less than ideal conditions. This week we received several encouraging reports concerning the housing recovery:
- February housing starts are holding steady at a 907,000 annual rate.
- February building permits—a sign of future homebuilding activity—surged to a 1.02 million annual pace.
- The average price of an existing home has jumped 9.1% to $189,000 in the past year.
- The inventory of existing homes has risen to 2 million, or a 5.2 month supply—we are drawing closer to the 6-month benchmark considered healthy by economists.
These reports paint a picture where ultra-low mortgage rates are aiding the housing recovery. And this should only heat up as the thermometer continues to climb higher. All-in-all, this is great news for homebuilders, home sellers and also the market as a whole. This quarter, analysts expect…
- The average home builder to see 113% earnings growth.
- The average home fixtures company to report 106% earnings growth.
- The average construction equipment company to post 18% earnings growth.
- The average home improvement store to grow earnings by 18%.
And what is good news for these companies is fantastic news for investors that are quick to the take. So without further ado, here are my top Portfolio Grader picks to profit from the housing recovery.
- Click here to see my top Construction & Engineering stocks.
- My top Construction Materials stocks.
- My top household durables.
- My top REITS.
- My top Real Estate Management & Development stocks.