In the video below, Fools Eric Bleeker, CFA, and Austin Smith discuss the best way to ride the housing boom to riches. After housing stocks rallied in 2012, investors everywhere want to know if the sector can still make them rich. Heck, even Warren Buffett has recently suggested that single-family housing may be one of the best investments out there today.
However, much like bank stocks, which rallied throughout 2012, many of these homebuilders are trading at far loftier price-to-book ratios than in the past. While the builders themselves are looking a little overvalued, there appears to be value still left in the "echo market" for home builds -- such as home furnishing companies, moving companies, and even online real-estate destination Zillow (NASDAQ:ZG).
Editor's note: The onscreen banner is incorrect; Andrew Tonner does not appear in this video. The Fools featured are Eric Bleeker and Austin Smith.
Austin Smith owns shares of Zillow. Eric Bleeker, CFA, has no position in any stocks mentioned. The Motley Fool recommends Zillow and owns shares of Zillow. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.