The housing market on both sides of the U.S.-Canada border is showing signs of a rebound, recovering from last year’s slump. The ongoing resurgence is positive news for many companies in the real estate and related industries in both countries.
In Canada, the number of homes sold jumped 3.6% in April, while sales from a year ago are up 4.2%, according to the Canadian Real Estate Association. In a similar trend, U.S. home sales rose 4.5%, to hit one-and-a-half-year high, according to Reuters. Positive economic fundamentals such as higher employment numbers, rise in immigration both stateside and in Canada, and low borrowing costs are expected to continue to support the real estate industry.
When housing demand rises, it spurs homebuilding activity which improves profitability for companies that are tapped into the real estate market. The following companies represent attractive investment opportunities as they tend to benefit from growing demand for their goods and services when the housing market springs to life, according to Morningstar equity research.
