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Housing Starts Up - Time to Invest in Homebuilders? | PowerOptions Web Log
The stock market surged in recent days with the surprising announcement that February housing starts were up 22% from January. The news has spurred some analysts to predict that we have finally landed at the bottom of the crippling housing slump with the euphoria of recovery soon to follow. Other experts insist that this outlook is overly optimistic and that the housing slump still has further to fall. With this division of opinion, it can be difficult for investors to determine whether or not now is the right time to invest in homebuilders. The good news that housing starts rose by such a large number is difficult to argue against. If nothing else, the news seems to have lifted people’s spirits and encouraged activity in the markets. However, questions remain. Is this, in fact, a sign that new home construction is on the rebound? Are the government’s steps to sure...