Unless you're in the housing market right now, you may not have realized how quickly the industry is shifting. And while what I'm about to tell you might seem like I'm sounding an alarm, I'm doing just the opposite.
This is the perfect opportunity to buy the best housing stocks on the market, and I found a stone-cold winner…
You see, I'm in the process of moving from Chicago to southwestern Florida.
Enough of Illinois' taxes. Enough of the snow. Enough of eating deep-dish pizza in the winter and adding on more pounds from rib festivals in the summer.
But I'm not fleeing on a whim. I made a deal with my wife shortly after we got married. We'd do three years in Chicago, and then we could relocate closer to our families.
At least, that was the plan. Then we put our condo up for sale here…
Higher interest rates are starting to price out buyers. It's looking more likely we're going to have to ride out another Chicago winter and hope buying picks up in the spring.
Currently, there's not a lot of supply, so I'm optimistic and being patient right now.
But unfortunately for me and my wife, homebuilders are sounding the alarms that trouble is brewing…
On Oct. 9, house-builder D.R. Horton Inc. (NYSE: DHI) issued a fiscal 2018 forecast, and the numbers were below Wall Street expectations.
Your Path to $2 Million: One new law is expected to change everything for the legal cannabis industry. To learn about three marijuana companies that could help put $2 million in your pocket by summer 2019, click here…
D.R. Horton said sales and orders are lower than expected thanks to rising interest rates, which have increased borrowing costs and limited access to capital for many would-be buyers.
An uptick in materials costs and higher labor costs have forced the company and many of its rivals to increase the price of homes at a time when they are less affordable.
That latter element grabbed my attention.
You see, the housing market might be slowing down, but that doesn't mean housing stocks are too. Just the opposite. This is the perfect opportunity to bank a quick profit as the market separates the wheat from the chaff.
Rising material costs, rising labor costs, and other negative factors have the potential to fuel consolidation in any industry as firms look to capture economies of scale.
That means companies that offer lower-priced homes could be acquisition targets to help home-builders offset losses from their higher-priced models.
Today, I'm looking for companies that specifically cater to the lower-priced end of the housing market, trade at rock-bottom prices, and/or can break out in the months and years ahead.
And boy, did I find a winner…
How I Found the Top Housing Stock to Buy
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.