Bullish news continues for the U.S. housing sector, even with interest rates spiking to pre-coronavirus levels.
Home prices rose 10.4 percent in December, according to S&P CoreLogic Case-Shiller yesterday. It was the biggest in seven years, accelerating from November’s impressive 9.5 percent increase.
It followed another surprisingly robust report on Friday: Existing home sales hit an annualized pace of 6.69 million, the highest reading since 2005.
Those numbers highlight underlying positives in housing. The U.S. entered 2020 with a shortage of houses, and then experienced a spike in demand as the pandemic fueled demand for suburban homes. The result has been one of the strongest markets in U.S. history, with builder sentiment flying past levels from the 2005-2007 real-estate bubble.
Interest rates have jumped since those numbers were collected. That’s helped to drag down housing stocks in recent weeks, but several builders remain near long-term highs.
Here are some key names to watch:
|DR Horton (DHI)||$28 billion||Homebuilder|
|Lennar (LEN)||$26 billion||Homebuilder|
|PulteHome (PHM)||$12 billion||Homebuilder|
|Lowe’s (LOW)||$123 billion||Home Improvement|
|Home Depot (HD)||$288 billion||Home Improvement|