Housing related stocks got a bump up after new data added to confidence that the housing recovery is back on track. Bobbi Rebell reports.
Happy days may be here again for the housing market. Groundbreaking for new housing surging 15.7 percent to an eight-month high in July, suggesting the U.S. housing market recovery is back on track, after stalling out in the second half of 2013 as rates rose. Trulia's Jed Kolko: SOUNDBITE: JED KOLKO, CHIEF ECONOMIST AND VP ANALYTICS, TRULIA (ENGLISH) SAYING: "This is a really strong support from back above that one million mark for housing starts. Now what we're seeing still is that multi-family starts are leading the recovery. That's mostly apartment buildings." Apartment buildings because of what is driving housing: SOUNDBITE: JED KOLKO, CHIEF ECONOMIST AND VP ANALYTICS, TRULIA (ENGLISH) SAYING: "Builders are responding to this now. That is why we are seeing them build more multi-unit buildings, mostly apartment buildings, than is typical. That means that builders are expecting more demand partly from young people moving out of their parents homes. and they are not building as much, especially single family homes in areas that were overbuilt during the bubble. " The housing data also boosted shares of housing stocks. Builders like D.R. Horton, Toll Brothers, KB Home and PulteGroup all higher in Tuesday trading. Shares of Home Depot hit an all-time high after it boosted its full year forecast because of strength in housing. Morningstar's Jaime Katz: SOUNDBITE: JAIME KATZ, EQUITY ANALYST, MORNINGSTAR (ENGLISH) SAYING: "People are willing to do bigger projects in their home. while volume sales have been moderating for both new and existing homes. I think prices still showing that there is some resilience in the market and that people are feeling positive about their wealth and the status of their home and yes we are willing to go and do projects." Good news expected as well from rival. Their results out on Wednesday.