Here's an overlooked reason the housing market could soon get even worse
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A Seaport analyst has downgraded multiple home-builder stocks due to a weak outlook for job growth, which could negatively impact the housing market. The analyst believes that the concern about job growth has not yet been priced into the sector, leading to a bearish stance on several home-builder stocks.
A Seaport analyst has turned bearish on multiple home-builder stocks. The analyst cites weak job growth as a major concern for the housing market. Recent data shows that the break-even employment rate is in long-term decline. This could lead to lower demand for new homes and hurt home-builder profitability. The analyst downgraded several stocks, including PulteGroup and Lennar, to sell or neutral. The housing market is already experiencing a decline, with single-family housing starts down 2.8% monthly.
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