Although the U.S. housing market is improving and home prices look to have bottomed, some analysts are saying the run may be over for the home builders and other housing-related stocks.
U.S. home resales edged higher in January and left the supply of homes at its lowest level in 13 years, a sign that steam is gathering in the housing market. But National Association of Home Builders' monthly confidence index did tick lower for the first time in 11 months, as builders worry about both access to mortgage credit but also higher labor and materials costs. Housing starts in January fell 8.5 percent.
With some home builder stocks having doubled in 2012, analysts caution that the group has likely gotten ahead of itself. Shares of Toll Brothers sold off sharply after the luxury home builder closed fewer sales in the latest quarter than analysts were looking for.