U.S. Housing: Bull
Despite today's gloomy housing market, a few are betting 2012 will mark the beginnings of a fundamental turnaround for the industry. Barclays analysts recently raised their price targets for homebuilders D.R. Horton, Lennar Corporation, Meritage Homes Corporation, Pulte Group and Toll Brothers.
The outlook, the analysts say, comes chiefly because prices for non-distressed homes have stabilized. They point out that the sales of foreclosed homes are no longer dragging down prices for the rest of the housing industry. What's more, the job market has improved during the past 12 months with the creation of 1.8 million jobs, an average of 150,000 a month. And since job creation has been considerably better this fall than last year, the bullish argument goes, this sets the stage for a strong spring selling season.
