Spring Selling Season
The housing sector is all set to enter the key spring selling season, which is considered the peak time for home sellers. Normally, the season starts in March and lasts through May-June thanks to warmer weather after a chilly winter and buyers’ inclination to move to a new house before the next school calendar starts.
Buyers brushed aside fears of sooner-than-expected Fed policy tightening as well as higher home prices. Rather, they are trying to dip their toes in the housing market for as long as the rates remain affordable. A solid job market is doing its bit to drive this segment.
Valuations also look attractive. Homebuilder shares recently traded at 10 times of 2018 profit estimates against the overall market’s P/E ratio of 17, despite the fact that companies are expected to report double-digit earnings growth this year and the next, as per barron’s.com.