Housing stocks are down, but there are signs of rebound, Barron’s says

Housing-related stocks have taken some big hits this year, but the stocks are now trading at attractive price/earnings ratios, Andrew Bary writes in this week’s edition of Barron’s. However, there remain many negatives, some bigger than others. Housing affordability measures have plunged for first-time buyers and even wealthier move-up purchasers. New orders are off sharply, with Toll Brothers reporting a 60% drop in the most recent quarter, the author notes. Much of the bad news-and little of the potential good-looks priced into housing stocks, and waiting for fundamentals to improve might mean waiting too long, Bary writes. Reference Link