The principal reason we remain housing bulls is that we have a lot of ground to make up.

It's worth mentioning that the new-home market is not the existing-home market. Many people want new homes, and there aren't as many of them as there was in the recent past. This suggests that we will see a sustained uptrend in housing construction over the next few years. This is important not just for us, but for the economy in general, as housing has historically contributed 2%-to-3% to gross domestic product.

The good news is that we see stronger economic growth and stronger job growth in 2014. The bad news is that this growth will ensure higher lending rates.

 Courtesy of Jessica Regan.

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