Homebuilder stocks have ticked up in early 2019, benefiting from a broader resurgence in equities. However, new and existing home sales closed out 2018 on a very low note, declining strongly in the face of continually weak affordability and uncertainty from an ongoing government shutdown.

Although the shutdown is over, uncertainty remains as official monthly figures on housing from the federal government is still delayed, and surveys show the shutdown affected buyer sentiment. Things may look rosy for the moment, but the fundamental weaknesses underlying the housing market are still very present in the new year, and will soon re-take the reins, sending homebuilder stocks plunging again . . .

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