This was a great interview on the housing market. Inventories are down to about 6.4 months supply which is very manageable. I certainly believe that there is still a shadow inventory hanging around there as well but as long as supply doesn’t grow faster than demand the market should continue to recover. Most of the homebuilding stocks are trading near their 52 week highs on optimism in the market. Building supply companies such as Home Depot, Lowes, and Masco, are all performing quite well in addition. I still believe the best play on housing is the financials because they are levered to a recovery, and they are trading below tangible book in many cases. Enjoy:
INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR ALL INVESTORS.