The sector enjoyed a huge rally last year with both homebuilder funds gaining more than 50% in 2012.
Still, some economists aren’t convinced the housing market is in a sustained recovery.
“It may have bottomed, but I am not sure it has a strong recovery,” Gary Shilling tells Yahoo Finance. “I think the risks are on the downside … I think housing is probably going to limp along at best.”
iShares DJ US Home Construction