The pace of home buying activity has been nothing short of impressive this past year. The right combination of low interest rates and the need for more space, plus other factors, has turned the residential real estate market red hot. And naturally, the stocks of home builders have been equally as hot. Revenues, profits and dividends have all grown in the wake of the rising residential property market.
And, yet, there could still be more room for growth.
Many of the trends propelling the group could last for another decade, according to analysts, with homes in short supply and interest rates still in a comfortable zone for borrowers, the home buying boom seems intact. With that, investors may have an interesting play on both capital gains and income growth.
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