Homebuilding

Mixed data on housing turnover and new home prices have created some uncertainty surrounding the S&P homebuilders index over the past year, but we continue to see robust upside potential. Home prices are recovering after experiencing volatility in recent quarters, but not to the extent that…

Homebuilders have been caught up in broad consumer discretionary sector weakness, but we expect differentiation to soon materialize. Housing starts are picking up steam (bottom panel) and are still trailing household formation, underscoring that structural demand for housing will remain solid.…