My top house builder shares to buy before the market recovers!

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With the stock market down, I’m on the lookout for shares to buy before the market recovers. And, personally, I think the house building sector is a great place to start.

So, let’s take a closer look at why I’m bullish on developers, and which stocks I’d buy today.

Why I’m bullish on house builders

Right now, many home building stocks are trading at a substantial discount compared to even last year. They’re also offering attractive dividend yields.

Share prices have fallen considerably due to a number of reasons. We have higher inflation pushing up building costs, there is a cost-of-living crisis, higher borrowing rates, and negative economic forecasts.

House builders have also been forced to sign up to a fire safety pledge by the government. The recladding of thousands of homes is costly, in the billions.

However, housing prices are currently at record highs, despite interest rates rising, and house builders are registering record profits.

The thing is, many house builders haven’t traded for cheaper than they are today. Well not in the last five years or so.

And I’m also bullish on long-term demand for property. Successive governments haven’t addressed the UK’s acute housing shortage, so I think demand will continue to outstrip supply for the foreseeable. Despite leaving the EU, the UK is a net receiver of migrants.

The fundamental data

So, let’s take a closer look at house building stocks and compare valuations, dividends, and the cost of the fire safety pledge.