It’s time to sell out of the housebuilding sector – here’s why

Shares in housebuilders have done very well in the last few years. But it's time to sell. Ed Bowsher explains why, and picks a more attractive sector to buy.

140509-housebuilders

Housebuilders: boom will inevitably turn to bust

If you bought shares in a housebuilder three years ago, you're probably feeling pretty happy now. Shares in several leading firms have doubled or trebled since then.

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Barratt (LSE: BDEV)382p228.5p1.6711.61
Berkeley (LSE: BKG)2387p1031p2.3110.94
Bovis (LSE: BVS)800p604.2p1.3210.7
Galliford Try (LSE: GFRD)1188p455p2.6112.6
Persimmon (LSE: PSN)1371p671.4p2.0411.3
Taylor Wimpey (LSE: TW)109p69.5p1.5611.1
Ed Bowsher

Ed has been a private investor since the mid-90s and has worked as a financial journalist since 2000. He's been employed by several investment websites including Citywire, breakingviews and The Motley Fool, where he was UK editor.

 

Ed mainly invests in technology shares, pharmaceuticals and smaller companies. He's also a big fan of investment trusts.

 

Away from work, Ed is a keen theatre goer and loves all things Canadian.

 

Follow Ed on Twitter