Meritage Homes Remains A Top Tier Play

2026-01-26 00:12:59 ET

In my view, the housing market is one of the most interesting spaces to play in when it comes to the stock market right now. This is because there are two opposing forces, and one of them must eventually win. On the one hand, you have years of inflationary pressures and high interest rates aimed at combatting them that have resulted in declining home sales and, over the last couple of years now, a drop in home prices. But on the other hand, you have a perpetual large shortage of homes, with the number of units short amounting to 4.7 million. 8.1 million families are living with somebody who is not related to them. My own view is that the oncoming recession will cause a rapid decline in interest rates. We might see some deflation associated with the materials that go into home building. And these two activities will go a long way toward making houses more affordable, leading to a boom in production....

Read the full article on Seeking Alpha

For further details see: