From Dirt To Drywall, The Stock Market Clearly Believes In A Housing Recovery | John Burns Real Estate Consulting

From Dirt To Drywall, The Stock Market Clearly Believes In A Housing Recovery


It’s no news that homebuilder stock prices have more than doubled over the last year, but did you know wallboard companies are up on average by 177% and land holding companies by 56%? Drilling down further, more than 140 companies and roughly 30 sectors are directly benefiting from the turnaround in housing. Stock market investors are clearly betting on a bright future for residential real estate, turning their attention to ancillary companies that will benefit from the trickle down nature of a true recovery. In fact, the early stages of a housing rebound have played out in similar fashion over the last 40+ years, this one included. The classic order of improvement is as follows: sales, permits, starts, and completions. As such, 2013 is looking bright for building product manufacturers as well as the myriad of sectors encompassed in the housing food chain.

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Rick Palacios Jr If you have any questions, please contact Rick Palacios Jr. at (949) 870-1244 or by email.

 

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