Why is now a good time to buy a house? First interest rates are really low. The housing market has adjusted itself from the high prices to prices that you can now afford.
A recent report from J.P. Morgan Asset Management, titled “Housing: A time to buy,” written by David Kelly and David Lebovitz, made the case for why a home may be a wise purchase.
“Although the U.S. housing market remains extremely depressed, we believe that given current valuations and demographic dynamics, now may be the time to consider an investment in housing,” the report said.
Lets see what the charts are telling us to do.
Here are 4 stocks that you will want to take a look at the charts,
PHM Pulte Group PHM is down substantially in 2011, while the S&P 500 Index is up slightly. The under-performance is worse than most in its sector, probably due to the company’s approach to the worst housing market in our country’s history.
Len Lennar LEN is down in 2011 and trailing the overall stock market, but holding up relatively well compared to most of the home building stocks. LEN is one of the best run public companies, but has not been immune to the perfect storm in the housing market.
KBH K.B. Homes KBH is down substantially in 2011, and considerably more than the overall stock market. While it is currently weathering the perfect storm for its industry, KBH has also been affected by how they have managed through it.
RYL Ryland Homes RYL is down for 2011, off about 20% and lagging both the overall stock market and the homebuilder index for the period. This well run homebuilder has done a good job of managing through this tough market.
DHI D.R.Horton DHI is down slightly for the year, compared to the S&P 500 index that is up slightly for the year. However, DHI is leading the homebuilding sector, which it has done for most of the year.
All of these housing stocks have been hit hard by the market, but they all needed to pull back and re-adjust its prices.
If you are buying stock and holding for a long period of time now be the right time for you to buy these housing stocks.
Take a closer look at the housing and if they look good then you might think about adding them into your portfolio.