Warning signs in the housing market

homebuilder stocks


The housing market has roared back to life in the past few years. Times are once again good for big homebuilders such as Lennar (LEN) and KB Home (KBH), which both reported solid earnings reports earlier this month.Other companies with strong ties to the housing market are doing extremely well too.

In case you forgot what happened to the housing market and economy shortly after that, the chart should serve as a painful reminder.

Now I’m not suggesting that the housing market is about to crash again. But with prices starting to perk up once more, some markets may be a bit frothy.

This is purely anecdotal. But it seems like a lot of people have become obsessed with Zillow (Z) estimates for their homes once more. That’s definitely a sign that there is some speculative nature to the market again.

How long can this last? Mortgage rates have started to increase and could head higher once the Federal Reserve finally starts to hike interest rates.

Full article: Warning signs in the housing market (CNN)

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