Housing Hasn't Hit the Roof Yet

Strong demand and tight supply are proving to be a sturdy foundation for the market, even though rates will likely tick up and home prices slip

After three straight years of record sales, it's understandable that the red-hot housing market, which has been the wobbly economy's pillar of strength, would start to cool from its torrid pace. But anyone who doubts that housing still has legs should just ask D.R. Horton (DHI ). On Apr. 16, the Arlington (Tex.)-based homebuilder racked up another quarter of record double-digit sales and profit gains. Net income shot up 44%, to $127.8 million, on $1.9 billion in sales, up 19% over the year-ago quarter.

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