Equity Residential (EQR), PulteGroup, Inc. (PHM): Is the Housing Market Booming Again?

This trend has boosted the bottom line of homebuilders like D.R. Horton, Inc. (NYSE:DHI). Last quarter the company saw its income jump 139% from the previous year. While sales were up 39% in the quarter the big driver in profits was the fact the company sold larger homes which increased the dollar value of the homes it sold. With housing data being very positive since that report, the company’s next earnings release on April 26 could be even better.

While the housing market is much healthier than it had been, it’s not booming yet. Though, that’s not exactly a bad thing given how the last boom ended. Instead, we’re seeing a steadily increasing market which is leading to solid gains across the board.

That’s meant steady growth for top residential mortgage originator Wells Fargo & Co (NYSE:WFC). Last year the company saw revenue grow 6% on 4% loan growth, both of which helped to drive profits 19% higher. That growth, when combined with the bank’s solid balance sheet, has enabled it to reward investors by increasing the dividend and buying back more shares.

The strength in housing activity has also enabled timberland owner and wood manufacturer Weyerhaeuser Company (NYSE:WY) to increase its dividend by 18%. CEO Dan Fulton noted that “stronger market fundamentals” were one of the driving forces behind the increase. It seems that everywhere you look positive signs in housing are pointing to an even brighter future.

So, while housing might not be booming per se, it has gotten a whole lot better. That’s really good news at a time in which we’re faced with a barrage of news we’d rather forget.

The article Is the Housing Market Booming Again? originally appeared on Fool.com is written by Matt DiLallo.

Motley Fool contributor Matt DiLallo owns shares of Wells Fargo. The Motley Fool recommends Wells Fargo. The Motley Fool owns shares of Wells Fargo.

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