While the current stock market may look optimistic to some investors, factors such as Donald Trump’s candidacy may play a role in providing lasting sustainability in the rally. Last November, United States home sales rose higher, with homebuilding stocks emerging as winners in the present market, any investor surely thanked the improved home sales numbers back then.
Donald Trump and Hillary Clinton were noted to “barring something extreme” by The Street’s Jim Cramer this month, as he referenced this in terms of political uncertainty which Cramer views must be resolved. For investors, Cramer also stated that we can now resume preparing our stock portfolios for either eventuality, which means in his view, this box has been checked.
The global financial crisis delivered disruptive change with the bursting of the housing bubble, which, as a result, has been through transformation in itself whereby homeownership is pulling back from the approximately 70 percent of households seen at the extreme of the bubble to 63.4 percent in the second quarter of 2015, according to PWC.
According to findings from the Commerce Department, home building sales increased 4.3 percent to a seasonally adjusted annual rate of 490,000 units. October’s sales was adjusted, falling to 470,000 units from the previously 495,000 units reported.
Lennar Corporation (NYSE:LEN) is arised as a winner from last November’s home sales growth. The homebuilding stock reported its fourth-quarter results, and surpassed the Zacks Consensus Estimate for earnings. LEN has adjusted earnings of $1.21 per share with a stock increase of 13 percent year over year driven by improved SG&A leverage, other revenue, and joint venture.
“You are never going to have all the planets align at once. But there are enough checks and half-checks for me to say that it makes sense to buy the dips in this market,” Jim Cramer said.
Today’s consumers are seeking value. The real estate market in the United States is filled with many niches, with significant diversity participants in asset types. For investors, it is imperative to keep an eye out for specific trends and conditions which may shape the equity and debt participants in the real estate capital markets for 2016 and beyond.