- Housing is still going strong despite economic threats and importantly rising rates.
- This is thanks to strong secular supply forces coming from the housing shortage, which is quite protracted and difficult to resolve in light of supply side issues.
- While the direction of housing prices is difficult to predict since rate increases could have to be substantial to stifle inflation, there are ways to play the shortage.
- We have four picks that have pent-up demand thanks to the slowdowns in housing inventory turnover, each with a compelling value case.
- With the return of the experience economy also limiting the need for rate increases, we think rate hikes will hit a sweet spot that resolves supply shortages while maintaining the housing demand.
For further details see:
Housing Prices Soared In March: What Stocks Should Investors Be Watching?