Additionally, it appears that the extension of the $8,000 first-time homebuyer tax credit didn't give the sector the boost that was so strongly desired.
Lastly, from a macroeconomic perspective, until a sustainable turn in the labor markets emerges, existing-home sales will likely feel downward price pressures.
Some ETFs that should keep these forces in mind include:
SPDR S&P Homebuilders
(XHB), which holds shares of homebuilders like
(DRH). XHB closed at $15.15 Wednesday.
iShares Dow Jones US Home Construction
, which holds shares of homebuilders like
. ITB closed at $12.34 Wednesday.
iShares Dow Jones US Real Estate
, which focuses on commercial real estate holdings like
Simon Property Group
Vornado Realty Trust
and will likely be indirectly influenced by the housing market. IYR close at $44.14 closed Wednesday.
These ETFs have seen a nice upward trend over the past year, but this could come to an end. To help mitigate the risks involved with investing in them, it's important to use an exit strategy with triggers at price points that represent abnormal price weaknesses.
, such price points for these previously mentioned ETFs are: XHB at $14.65; ITB at $11.92; IYR at $43.05. These price points fluctuate on a daily basis and are reflective of market conditions and volatility. Updated data can be found at www.SmartStops.net.
-- Written by Kevin Grewal in Laguna Niguel, Calif.