Do consumers and investors need to be worried about another housing bubble? Hopefully, the answer is no. But the question can’t be ignored.
The housing market has roared back to life in the past few years. Times are once again good for big homebuilders such as Lennar (LEN) and KB Home (KBH), which both reported solid earnings reports earlier this month. Other companies with strong ties to the housing market are doing extremely well too.
Home Depot (HD) and Lowe’s (LOW) are near all-time highs. Business is booming for paint maker Sherwin-Williams (SHW), mattress king Tempur Sealy (TPX) and appliance manufacturer Whirlpool (WHR). Both of them are now at their highest levels since early 2007.