Solid demand, backlog of home orders favors builders in ’22
LOS ANGELES (AP) — Homebuilder stocks have outpaced the broader market this year, and analysts are bullish on the prospects for more gains in 2022, despite expectations of continued supply chain woes.
The SPDR S&P Homebuilders exchange-traded fund is up 45% this year, more than double the S&P 500. The gains reflect confidence in builders’ prospects for capitalizing on a housing market underpinned by strong demand, still-low mortgage rates and a shortage of homes on the market.
Supply chain bottlenecks have led builders to accumulate a backlog of orders they won’t be able to deliver until next year, which should help boost sales in 2022.