Homebuilders: A Closer Look at Economic and Fundamental Indicators

Public homebuilders, like the majority of public companies, have seen their share prices coming off their lows during the last 12-18 months. But, while many sectors have started to see improvement in business conditions, homebuilders are still limping along with the aid of government programs designed to increase consumer incentive to purchase a home. With housing stocks at levels that we haven't witnessed since the early 2000’s, we set out to analyze whether the move up is too fast, considering the fundamentals and economic factors that existed the last time homebuilders traded at these levels.