The housing market is going through somewhat of a boom at the moment. This means that there has been no better time to start investing in the housing market.
While many people may not be able to purchase a house, there is an easy way to take advantage of the property price boom. This is to purchase housing stocks.

Lenmar

Between 2020 and 2021, the share price of Lenmar rose by a whopping 280%. This was after a drop at the start of the pandemic. However, now many people are starting to predict that the property sales will rise again, Lenmar shares started to look interesting again.

Lenmar is the largest homebuilder in the United States. Whenever there is a boom in the housing industry, Lenmar benefits. The company has so much work right now, that some of their property development projects are slightly delayed. For others, they are pairing with other major construction companies to complete them. This is likely to carry on for the foreseeable future, with Lenmar planning to build tens of thousands of homes.
One of the great things about Lenmar is that this company also plans for the lulls in the market. Their processes mean that when there is a slight dip, their share price is fairly stable. They are one of only a few housing companies that seem to be close to recession-proof. This makes them a solid investment.

NVR

This property company may not be as large as Lenmar, but they have certainly been able to hold their own in this current housing market. Their ROI over the last 12-months has been 17% for those willing to part with their shares. Those planning to hold onto their shares for the long-term are likely to see a massive return.

Again, this is a company that has a massive backlog of house builds, which means they are likely going to be busy for years and years to come. This is certainly a stock that everybody should be keeping a close eye on.

PulteGroup

PulteGroup is a company that offers a 1% dividend each year on its stocks. It may not be a whole lot of cash if you own just a few shares from them. However, for those looking to build up their stock portfolio with housing market stocks, then PulteGroup can deliver a sizable return.

They are the third-largest homebuilder in the United States. Like the two companies before, they have seen huge boosts to their share price in the last year. This is likely to continue rising.

One of the reasons why PulteGroup is such a hot pick for those looking to play the housing market is the fact that these are one of only a few homebuilders not taking on new debt. In fact, in the last few years, PulteGroup has made serious efforts to pay off the debt that they do have. This means that if there is another housing crash, PulteGroup is going to be in a nice position to ride the wave.

Toll Brothers

Toll Brothers stock has risen by around 45% in the last year. Many industry analysts predict that their stock isn’t done rising too. This means that it is now one of the best times to purchase stock in Toll Brothers.

One of the unique things about Toll Brothers is that they have a strategy to purchase land cheaply. They also stick to the more luxury homes. Luxury homes rarely see a dip when the housing market collapses. In fact, during some recessions, we have seen luxury homes climb in price. This is because the rich do tend to profit from recessions.

Toll Brothers still has a sizable backlog of properties to build. While it is slightly lower than the backlog that they had in 2020, it is only marginally lower (0.3%), and they believe that sales will continue to rise going forward. Investors certainly seem to believe that the sales of Toll Brothers will continue to rise demonstrated by their ever-increasing stock price.

Alarm

These aren’t homebuilders, but their share price is greatly influenced by the housing market.

Alarm, as the name suggests, sells home security products. In 2020, they saw a dramatic reduction in the amount of business that they generated. Their share price fell by around 20%. Industry analysts believe that they are in a good position to see a rise with all the new home builds, though.

Many new home builds are seeing the installation of smart technology. The same goes for home renovations. Alarm.com is in a fantastic position to provide these companies with the technology products that they need.

It isn’t just Alarm that is likely to see their share price increase either. Any company that profits from home renovations or new builds e.g. home depot, flooring manufacturers, etc. will likely see a massive increase in the value of their stock. This means that they are all going to be safe bets for those interested in investing.

Conclusion

The housing market is going through a boom. This is because interest rates on mortgages have fallen drastically. There are now a lot of people looking for the best mortgages to either buy their first home or upgrade their current one. This means that now is the best time in years to get investing in housing stocks. There is a chance to make a serious return on investment here.

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