Looking ahead, housing market investors are waiting on the Case-Shiller index and the new earnings season.
Goldsborough also warned that the homebuilders sector is cyclical in nature. The industry has a low barrier to entry and many companies have large lad banks on their balance sheets, which can constrain a large chunk of capital for a long period of time.
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For more information on the housing market, visit our homebuilders category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own XHB.