Housing market - are we on the moon yet ?

In the current environment, I would not dare to buy most of the homebuilder stocks. If I had time and energy ( I don't), I would be shorting a few of them.

That said, once the inevitable slowdown shows up with rising interest rates, we should see a few of the smaller players getting acquired.

Most of the smaller players are very expensive too right now, but here is a very short watchlist.

• Dominion Homes (DHOM) : A builder concentrating on Ohio, Kentucky etc, where home prices have not gone through the roof. Could be very attractive for larger players who don't have a presence in these states. I own a few and will be buying more in $19-22 range.
  
• Champion Enterprises (CHB): This manufactured homes seller is slightly expensive right now. I own a few bought at a much lower price (55% current price) and waiting patiently for another buying opportunity. One of its competitors, Clayton Homes, is now owned by Berkshire Hathaway.