Residential Real Estate Is Ready to Recover

NEW YORK (Real Money) -- The housing market's shadow inventory of unsold homes is starting to clear, certain areas of the country are experiencing signs of more robust activity, and, despite low levels of new-home production (based on historical data), homebuilders are even regaining pricing power in several geographic regions.

Stated simply, the U.S. residential real estate market is about to launch a broad and sustainable multiyear recovery. And, from my perch, the share price strength in housing-related equities is telling the real story of an improving and self-sustaining home market that could continue through the balance of this decade.

As proof of my emerging optimism, I would suggest listening to Toll Brothers' (TOL) last two earnings conference call presentations and the recent observations made by CEO Doug Yearley in the media.