The Canadian housing market has heated up in October, posting a sales increase after slipping in the summer. Canada’s real estate market still boasts solid fundamentals due to low supply, historically low interest rates, and surging demand. Investors should still look to snatch up housing stocks in this environment.
Home Capital (TSX:HCG) is a Toronto-based alternative lender that provides residential and non-residential mortgage lending and other credit services in Canada. Shares of this housing stock have climbed 39% in 2021 as of close on November 29. However, the stock has dipped 3.2% over the past week.
In Q3 2021, Home Capital reported origination volume of $21 billion – up from $18 billion in the previous year. Shares of Home Capital possess a price-to-earnings ratio of 8.9. That puts the housing stock in favourable value territory at the time of this writing.
Equitable Group (TSX:EQB) is another top alternative lender that is worth targeting in the final weeks of 2021. This housing stock has increased 49% in the year-to-date period. Its shares have dropped 3.7% week-over-week as of close on November 29.
The company unveiled its third quarter 2021 earnings on November 2. Assets under management (AUM) jumped 13% year-over-year to $40.2 billion. Net earnings in the year-to-date period jumped 39% from the previous year to $212 million. Meanwhile, diluted earnings per share jumped 38% to $12.15. This housing stock also has a very favourable P/E ratio of 9.6.