“While household formation, the core demand driver of housing starts, has begun to improve in 2012, greater gains still lie ahead,” JP Morgan analyst Michael Rehaut said, according to the Reuters story. “An incremental tightening of supply in 2012 should act as a solid protection against downside risk in the housing market, particularly in terms of home prices, in the event that demand slows or the macroeconomy falters near term, he added.”
ITB and XHB are up 43.7% and 30.6% year to date, respectively, according to investment researcher Morningstar.
U.S. home prices jumped 4.8% last quarter, the highest rate in eight years, mortgage giant Freddie Mac said Wednesday, Investor’s Business Daily reports.
iShares Dow Jones US Home Construction Index
