The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has risen strongly over the past month, up 13.66%.
The ANZ share price is in the green this morning, breaching $26 per share for the first time since May.
Top broker Citi reckons there is more growth ahead for the ANZ share price.
Why will the ANZ share price keep rising?
According to a report in The Australian today, top broker Citi thinks ASX shares related to housing are winners. The broker says ASX investors should "start to build positions now" in such companies.
The most obvious housing-related companies to invest in are ASX bank shares. This is because they are the biggest lenders to households and hold billions of dollars in mortgages on Australian property.
Citi expects the Reserve Bank of Australia to raise the official cash rate to a peak of 3.35% in early 2023. It expects an average fall in house prices of 23% from the peak to the trough — sometime late next year.
But here's the clincher for ASX investors.
Citi's own quantitative analysis indicates that housing-related shares tend to hit their floor six months before house prices.
They also begin to outperform the broader market about a year before the trough in house prices.
Citi says:
This suggests that investors should start to build positions now, with the added fillip near-term of several stock and sector nuances which underpin our view of more compelling value today.
These range from industry impacts like excess liquidity in banks and an elongated building cycle – to more stock specific (factors like) acquisitions.
Which ASX shares related to housing does Citi recommend?
Citi sees upside in the ANZ share price, along with the Westpac Banking Corp (ASX: WBC) share price.
The broker's other housing-related ASX share picks outside banking are Harvey Norman Holdings Limited (ASX: HVN), Nick Scali Limited (ASX: NCK), Mirvac Group (ASX: MGR), CSR Limited (ASX: CSR), Fletcher Building Limited (ASX: FBU), and BlueScope Steel Limited (ASX: BSL).
ANZ released its full-year results last week and declared a final dividend of 74 cents per share.
This was a 2.8% increase on the FY21 final dividend.
The ANZ share price currently offers a trailing grossed-up dividend of 8%.
