Joe Friday

Homebuilders Agree: January Was A Good Month

I listened to the cc for both CTX and RYL and there was a note of optimism with respect to the January numbers on both calls.
It is my view, however, that the January results were likely an anomaly and not an indicator of a change in trend. All economic indicators continue to deteriorate. My guess (note only a guess) is that there may have been some optimism tied to the Obama effect in January. We will see if there is a confirmed trend in the next couple of months.

Downside For KB Homes Not Necessarily Priced In

dhk. can you share your insight as a builder as to the realistic decline in lot values in your area, and to the extent that you can, comment on the lot inventory of KB. It seems to me that, for the most part, putting a real value on the lot inventory is the key question in determining the realistic value of the homebuilders.