Lennar Corporation (LEN), Radian Group Inc (RDN), Silver Bay Realty Trust Corp (SBY): Don’t Just Sit There… Join the Housing Trend!

Ending inventory of delinquent loans declined moderately to 93,930. Billionaire hedge-fund manager John Paulson — who made his reputation shorting the mortgage market in advance of the 2008 bust — is heavily invested in Radian Group Inc (NYSE:RDN). In a letter to his investors, he wrote that he believes Radian Group Inc (NYSE:RDN), which currently trades at $13 a share, will be worth $20 by 2015.

Lastly, you can think of housing in terms of income from houses, or specifically — renting out single family homes. That’s where Silver Bay Realty Trust Corp (NYSE:SBY) comes in. Silver Bay Realty Trust Corp (NYSE:SBY) is a former spin-off of Two Harbors. The $4 billion REIT decided that it wanted to dedicate a separate company to pursue the opportunities in the single family home market. That’s why Two Harbors created Silver Bay, and it’s currently its largest shareholder and manager.

Silver Bay Realty Trust Corp (NYSE:SBY)‘s initial portfolio of real estate is comprised of 3,100 single family homes, with an average rent of $1,170 per house. I believe Silver Bay Realty has the potential to be a great long-term value play. The company’s balance sheet offers significant value in the form of $6.05 in cash per common share, and NAV (Net Asset Value) of $17.65 per share.

Recently, Silver Bay Realty Trust Corp (NYSE:SBY) announced a repurchase of up to 2.5 million shares of its common stock. This equates to 7.5% of the company’s current share float, and is a very positive sign.

The takeaway

Interest rates remain historically low, inventory is dwindling, and the sentiment towards the housing market has shifted and has become positive. All the signs are in place for a strong continued rebound in home prices. Whether you prefer to invest in a home builder, a REIT, an insurer, or in single family homes — that’s up to you. But don’t just stand on the sidelines. Jump right in.

The article Don’t Just Sit There… Join the Housing Trend! originally appeared on Fool.com and is written by Shmulik Karpf.

Shmulik Karpf has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Shmulik is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.