Real estate is hotter than ever with industries across the entire market grabbing a piece of the pie – if you want to join the party – look no further!

“Location, location, location.”

That’s what they say about valuable real estate. I thought I would get the cliche out of the way before we proceed to talk about a stock pick for a real estate construction company that the market is pumped about right now…

And so is our Green Zone rating system.

Real estate, like many other industries, has been affected by material shortages and high labor costs…

Builders have been forced to pay premium prices for materials such as cement, copper, lumber, and steel.

Now, add on top that workers are in short supply as well – and you’ve got a perfect recipe for a hot and volatile industry…

But don’t fret, my fellow Money Movers! There is a company in the real estate market worthy of being included in your portfolio.

But I’ll get to them in a moment…

First, let’s talk about the year that was 2021 in real estate and the year to come in 2022.

Last year was most definitely a sellers’ market – as anybody who was trying to buy a home in the past 12 months – and they’ll tell you all about it.

According to NAR’s profile of home buyers and sellers annual report, a third of buyers in 2021 purchased their homes ABOVE asking price. First-time buyers increased 34% last year – the largest increase since 2017…

And the typical first-time buyer was 33 years old.

Home prices rose sharply, and the number of homes for sales declined.

2022 looks like it will STILL be largely a sellers’ market… but with modest improvement for buyers.

Last year home prices soared to all-time highs…

For example, back in June, the national median home price hit $382,800, a record high. Home prices in Phoenix, San Diego, and Tampa all saw prices rise over 25%.

house for sale

Low mortgage rates and limited supply buoyed prices.

And those prices are likely to rise in the first quarter of 2022 due to increased demand by buyers ahead of the Fed’s expected interest rate hikes which will also push mortgage rates higher.

So… now, let’s take a deep breath.

That was a lot of data. You might be wondering, “it’s nice that I know all that information on real estate, but how is that going to make me money?”

Well, that is a legitimate question, my fellow Money Movers!

There is a company that Wall Street is bullish on, and that is KB Homes (KBH).

KB Homes had an outstanding year and is anticipating another great year in 2022.

KBH reported strong earnings in the Q4 of 2021 – earning $1.91 per share and reported sales of $1.7 billion.

KB Homes’ final quarter of the year was strong, surging 40% year over year, and showed a 28% increase in homes delivered.

The company also reported that home prices in its inventory grew 9% year over year, to $451,000…

This led to higher operating profit margins and earnings increased 71% year over year.

Also, the value of its backlog of homes ordered but not yet delivered grew 67% in Q4, which means that the company is set up nicely to make boatloads of cash in 2021.

And according to our green zone ratings system—which is “strong bullish” on KB Homes – you can bet that things will be looking up for KB Homes

If Wall Street is seeing big things for KBH…

And the GZF rating system sees big things for KBH…

Then so can you, my fellow Money Movers. So can you!