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Homebuilders: This Bubble Could Pop

Leo Nelissen profile picture
Leo Nelissen
24.11K Followers

Summary

  • Homebuilding stocks are outperforming the market due to a surge in demand for new homes and a shortage of housing supply.
  • However, there are mounting risks, such as a potential shift in unemployment, that could negatively impact the housing market and make investing in homebuilding stocks less favorable in the long term.
  • Concerns about the commercial real estate market and tightening lending conditions also raise concerns about the overall lending market and potential ripple effects on small businesses.

Housing market risk

BrianAJackson

Introduction

It's time to talk about housing and homebuilding. After last month's article on real estate, we're now shifting our focus to homebuilders and other related housing indicators. Why? Because homebuilding stocks are flying, outperforming the market and other housing-related investments by

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StockCharts (ITB/SPY Ratio)

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Federal Reserve Bank of St. Louis

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NAHB

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Wall Street Journal

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Redfin

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Wells Fargo (Author Annotations)

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ING

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Federal Reserve Bank of St. Louis

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CME Group

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The Daily Show

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True Insights

This article was written by

Leo Nelissen profile picture
24.11K Followers
Welcome to my Seeking Alpha profile!I'm a buy-side financial markets analyst specializing in dividend opportunities, with a keen focus on major economic developments related to supply chains, infrastructure, and commodities. My articles provide insightful analysis and actionable investment ideas, with a particular emphasis on dividend growth opportunities. I aim to keep you informed of the latest macroeconomic trends and significant market developments through engaging content. Feel free to reach out to me via DMs or find me on Twitter (@Growth_Value_) for more insights.Thank you for visiting my profile!

Analyst’s Disclosure: I/we have a beneficial long position in the shares of HD, CSL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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