Haven’t we already been through the housing boom?
During the pandemic, people flocked to houses. Houses in the country, houses in the suburbs, houses anywhere away from other people.
And, thus, house prices went insane.
But that’s over now, right?
Now it’s back to reality in the form of high interest rates and a recession.
Not so fast.
Yes, rates are rising but mortgage rates are still reasonable.
Incredibly, the housing boom may not be over at all.
And the housing sector is currently one of the top 5 hottest sectors in the world.
Recently we talked about PHM (Pulte Homes).
Since 2022, PHM has outpaced the market by 30%. And, when we talked about it, we were looking to see if PHM could break above $60.90.
It’s just surged above that level:
Haven’t we already been through the housing boom?
During the pandemic, people flocked to houses. Houses in the country, houses in the suburbs, houses anywhere away from other people.
And, thus, house prices went insane.
But that’s over now, right?
Now it’s back to reality in the form of high interest rates and a recession.
Not so fast.
Yes, rates are rising but mortgage rates are still reasonable.
Incredibly, the housing boom may not be over at all.
And the housing sector is currently one of the top 5 hottest sectors in the world.
Recently we talked about PulteGroup, Inc. (PHM).
Since 2022, PHM has outpaced the market by 30%. And, when we talked about it, we were looking to see if PHM could break above $60.90.
It’s just surged above that level:
The next stop for Pulte could be a profit target level of $81. Or a trader could just hold it as long as it stayed above the long-term moving average line.
Housing stocks are soaring at the moment.
And Pulte’s friend, D.R. Horton (DHI), could be next:
Happy trading,
Scott
