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Homebuilder decline a 'gift' for investors: Strategist

Shares of homebuilders have tumbled with broader markets, but fundamentals in the sector make the stocks appealing on weakness, one strategist said Monday.

The SPDR S&P Homebuilders ETF lost 4 percent on the day as the S&P 500 fell 3 percent. Amid rebounding U.S. homebuilder data and strong earnings, investors can scoop up strong names on the drop, said David Rosenberg, chief economist and strategist at Gluskin Sheff.

"Housing is becoming a very positive story domestically for the United States, and you just have had a gift handed to you," he said in a CNBC "Closing Bell" interview.

New homes under construction in California.
George Rose | Getty Images
New homes under construction in California.

A monthly homebuilder sentiment index released last week by the National Association of Home Builders rose 1 point to 61 in August. The reading was the highest since 2005.

Read MoreHomebuilder confidence rises 'slow but steady'

Also last week, No. 1 home improvement retailer Home Depot reported a better-than-expected rise in quarterly same-store sales while raising its full-year guidance. But the stock has also struggled, down more than 7 percent in the last five days.

Market panic has been "imported" from China, but U.S. homebuilders largely rely on domestic demand, Rosenberg said. He contended that Home Depot and other stocks in the sector look appealing for investors who missed the early stages of the years long bull market.