Should You Avoid Housing Stocks in 2021?

The Canada Mortgage and Housing Corporation (CMHC) recently stated that Canada’s housing market was highly vulnerable. Toronto, Ottawa, and Montreal were among the markets that were flashing the highest risk. It attributed the spike in vulnerability to price acceleration and overvaluation in the national housing market. This warning is troubling, but low supply and a friendly credit environment has underpinned this market for roughly a decade. There was a dip in 2017, but the market quickly recovered.

Atrium Mortgage (TSX:AI) is an Ontario-based company that provides financing solutions to the real estate communities across Canada. Its shares have climbed 13% in 2021 as of late afternoon trading on September 30. The stock is up 30% from the prior year.

In Q2 2021, Atrium Mortgage delivered net income growth of 8.2% to $10.6 million. The loan quality at Atrium remained strong compared to previous quarters. This housing stock possesses a favourable price-to-earnings ratio of 15. Better yet, it offers a monthly dividend of $0.075 per share, representing a tasty 6.2% yield.

Bridgemarq Real Estate (TSX:BRE) provides services to residential real estate brokers and REALTORS across Canada. The stock has climbed 11% in the year-to-date period. However, it shares have dipped 2.3% week over week.

This dividend stock offers a monthly distribution of $0.113 per share. That represents a monster 8.1% yield.