Tim Plaehn

Homebuilding Stocks: Rising With Reason

Homebuilders have cleaned up their balance sheets, written down or sold inventory so they will stay in business. Next step is reduction of existing homes on market to something like a 6 month inventory and prices stabilizing. Homebuilders can sit where they are, but until they can start building and selling homes there will be no profits to speak of. I think there is a 6-12 month window here if someone is interested in homebuilders and stocks could be picked up on pull backs.