Homebuilder stocks haven't built up their shares much in 2016, but one trader thinks that's about to change.
"This sector has been relatively flat year to date, while other reflation assets have actually traded higher," said "Fast Money" trader Tim Seymour. He added that he thinks the sector is "an interesting place to be" for the remainder of 2016.
The S&P Homebuilders ETF is up just about 5 percent for the year. The housing market has hit hurdles this year as homebuilders point to shortage of land and labor plus regulations both causing a slower recovery.
The housing market did get a bullish sign this week when U.S. housing starts jumped in July to a total of 1.21 million versus the 1.18 million expected. "We are still 25% below the long term average," said Seymour. "This is a nice steady pace and I think housing continues on that pace," he added.
When looking for the best bet in the space, Seymour points to PulteGroup, noting its recent analyst upgrades from the Street. "This is a name that trades cheap to its all-time average and a name that, to me, is poised to outperform in the second half," he explained.