A housing recovery is under way by almost any measure.
Sales of new and previously occupied homes are running ahead of last year, helping to propel home prices higher. What’s more, the supply of houses available for sale has fallen to a 10-year low. That’s driving builders to break ground on new homes at the fastest pace since July 2008.
Even with the direction of the economy still in doubt as lawmakers try to strike a compromise to avoid a series of automatic spending cuts and tax increases scheduled to start Jan. 1, many economists expect the positive housing trends to continue.
That’s good news for companies that sell everything from insulation and roofing materials, to carpeting and power tools used to build or remodel homes.
Despite a push by investors into housing-related stocks this year, the three stocks below continue to have an average “buy” rating from financial analysts.Associated Press