Are investors too pessimistic on U.K. homebuilders?

Green shoots are beginning to appear in early 2023 as housing market leading indicators begin to suggest a trough in homebuyer confidence is forming. While there is no doubt that near-term challenges certainly exist, the long-term outlook for the major U.K. homebuilders looks upbeat, including for one major homebuilder that is currently trading at 40% discount, according to this Morningstar report.