In other words, consumers still want to buy new houses and live the proverbial suburban American dream, especially since Covid-19 is still a major concern.
“Demand is obviously not a problem, as evidenced by the recent increases in sales, [mortgage] applications and homebuilder sentiment,” said Jefferies economists Thursday. “If anything, Omicron should cement housing demand, by demonstrating that the pandemic is far from being over.”
Housing stocks continue to surge…and so are home prices
It’s also worth noting that even though Lennar’s stock fell a bit Thursday after releasing earnings, it remains near record highs. And it’s not the only housing stock that has thrived in 2021.
So it looks like investors in housing stocks may be benefiting as much from the continued boom as home sellers are.
“Right now the only thing likely to slow the rate of home-price growth is a mortgage-rate hike, which would be something of a Pyrrhic victory for homebuyers,” said Redfin chief economist Daryl Fairweather in report.