By The Sizemore Letter<\/u><\/p>\n
Jeff Reeves and I chat about the prospects for the housing market.\u00a0 Read Jeff’s comments\u00a0from his write-up on\u00a0The Slant<\/a>:<\/em><\/p>\n Charles Sizemore stopped by the office last week to talk about the current state of the housing market, and demographic trends that could mean long-term growth for real estate even if the short-term outlook is rocky.<\/p>\n In a nutshell, we are facing a bit of muddled data right now as the big run-up off the bottom of the real estate market has created some froth in the markets. Homebuilder stocks including Toll Brothers<\/strong> (<\/span>TOL<\/a>)<\/span>, PulteGroup<\/strong> (<\/span>PHM<\/a>)<\/span> and KB Home<\/strong> (<\/span>KBH<\/a>)<\/span> have all been battered in 2013 after a strong 2012, and mixed data on housing starts lately is starting to hint that real estate isn\u2019t as bullish as it was last year.<\/p>\n But Charles said that while there is admittedly a cooling off, in part because of fears of tighter central bank policy boosting\u00a0mortgage rates, housing remains buoyed by long-term trends including the aging Millennials and an increase in household formation.<\/p>\n In short, in about five to 10 years folks will start a family and settle down in bigger numbers simply because of demographics. They are going to buy houses and boost real estate and housing as a result, so any short-term softness may in fact be a big long-term opportunity.<\/p>\n<\/blockquote>\n Charles Lewis Sizemore, CFA, is the editor of the\u00a0Sizemore Investment Letter<\/a>\u00a0and the chief investment officer of investments firm Sizemore Capital Management. As of this writing, he had no position in any stock mentioned.\u00a0Click here<\/a>\u00a0to learn about his top 5 global investing trends and get your copy of \u201cThe Top 5 Million Dollar Trends of 2013.\u201d<\/em><\/p>\n This article first appeared on Sizemore Insights as Is There Still Upside in Housing?<\/a><\/p>\n\n