Homebuilders Poised to Rally Further With Fed Pausing, Demand Rising, Citi Says
- Homebuilder stocks continue to outpace the S&P 500, rising 33%
- Resilient buyer demand, firm home prices support further run
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Citigroup Inc.’s analysts see several catalysts supporting further homebuilder outperformance through the second half of 2023.
With spring selling season typically giving way to a slower summer, investors are focused on whether resilient buyer demand, solid home prices and a potential Fed pause will support further homebuilder outperformance through the end of this year. A gauge of homebuilders is currently up 33% year-to-date, compared to the S&P 500’s 12% gain for that same time period.