Home Sales Rise In November; Homebuilding Stocks Winning

U.S. home sales rose 4.3 percent in November

The Commerce Department on Wednesday announced that sales increased 4.3 percent to a seasonally adjusted annual rate of 490,000 units. October's sales pace was revised, lowered to 470,000 units from the previously reported 495,000 units.

Lennar Corporation LEN is already coming out on top from November's rise of home sales. On December 18, the company reported fourth-quarter adjusted earnings of $1.21 per share which increased 13 percent year over year driven by joint venture, improved SG&A leverage and other revenue.

KB Home KBH traded up 1.45 percent on Wednesday, reaching $12.58. The company's stock had a trading volume of 903,279 shares. Hedge fund Eagle Asset Management boosted its stake in KBH by 129.2 percent during the third quarter, according the company's Form 13F filing with the Securities and Exchange Commission.

The global financial crisis delivered disruptive change with the bursting of the housing bubble, which, as a result, has been through transformation in itself whereby homeownership is pulling back from the approximately 70 percent of households seen at the extreme of the bubble to 63.4 percent in the second quarter of 2015, according to PWC's 2015 Real Estate Report.

America's real estate market is filled with many niches, with significant diversity participants in asset types. For investors, it is imperative to keep an eye out for specific trends and conditions which may shape the equity and debt participants in the real estate capital markets for 2016 and beyond.