Here's an overlooked reason the housing market could soon get even worse

A Seaport analyst turned bearish on multiple home-builder stocks, arguing that a weaker-than-expected job-growth outlook could be a larger long-term drag on housing demand than the recent jump in oil prices. The call increases downside risk for builder equities and suggests investors should be cautious on the sector until labor-market trends improve.

Analysis

A Seaport analyst turned bearish on multiple home-builder stocks, arguing that a weaker-than-expected job-growth outlook could be a larger long-term drag on housing demand than the recent jump in oil prices. The call increases downside risk for builder equities and suggests investors should be cautious on the sector until labor-market trends improve.