Real estate is hotter than ever and the entire market industry is getting a piece of the pie. If you want to attend a party, you don’t need to search anymore.
“Place, place, place.”
That’s what they say about valuable real estate. Before talking about stock picking for building companies whose markets are exploding, I thought I would try not to fall into the cliché…
The same goes for the green zone classification system.
Real estate, like many other industries, is affected by material shortages and high labor costs…
Builders are forced to pay additional prices for materials such as cement, copper, wood and steel.
Now add that workers are also in short supply – and you have the perfect recipe for a hot and volatile industry…
But don’t worry, fellow mover! There are companies in the real estate market that deserve to be in your portfolio.
But I will join them soon…
Let’s talk about real estate first in 2021 and next year in 2022.
Last year was definitely the sellers’ market – anyone trying to buy a home in the last 12 months – and they’ll tell you all about it.
According to the annual NAR Home Buyers and Sellers report, one-third of buyers in 2021 bought homes above asking price. First-time buyers increased by 34% last year. This is the biggest increase since 2017…
And a typical first-time buyer was 33.
Home prices have skyrocketed and the number of homes for sale has declined.
2022 still appears to be primarily a seller’s market…but there are modest improvements for buyers.
Last year house prices hit record highs…
For example, in June, the median home price across the country hit an all-time high of $382,800. Home prices in Phoenix, San Diego and Tampa all rose more than 25%.
Mortgage rates have increased due to low interest rates and limited supply.
These prices could also rise in the first quarter of 2022 due to increased buyer demand ahead of the Fed’s planned rate hike, which will also push mortgage rates higher.
So… let’s take a deep breath.
It was a lot of data. You might be wondering, “It’s good to know all the information about real estate, but how can you make money from it?”
Well, that’s a legitimate question, fellow mover!
There is one company where Wall Street is bullish, and that is KB Homes (KBH).
KB Homes is having a great year and we expect 2022 to be another great year.
KBH generated $1.91 per share in the fourth quarter of 2021 and had sales of $1.7 billion.
KB Homes performed well in the last quarter of this year, with a 40% year-on-year increase and 28% more homes delivered.
The company also reported that inventory home prices rose 9% year-on-year to $451,000…
This improved operating margin and increased revenue by 71% year-over-year.
In addition, the value of the backlog of homes ordered but not yet delivered increased by 67% in the fourth quarter. This means that the company was successfully established in 2021 to earn a lot of money.
And according to our green zone rating system, it’s “Strong bull” At KB Home – There’s no doubt things are looking up for KB Home
If Wall Street is planning something big for KBH…
And the GZF rating system sees great things for KBH…
So my fellow mover, you can do it too. So you can!
Hot Real Estate Market offering a HOT opportunity in this Hot Stock Source link Hot Real Estate Market offering a HOT opportunity in this Hot Stock