Despite all the bad housing news (I, II), shares of home builders rally for the second straight...

Despite all the bad housing news (I, II), shares of home builders rally for the second straight day, as traders apparently believe the worst is really over for housing. TOL +5.8%, KBH +5.1%, MDC +3.8%, PHM +2.9%.
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Comments (5)
  • alibeamish
    , contributor
    Comments (342) | Send Message
    Maybe a new tax credit in the works? Or lower rates?
    25 Aug 2010, 02:42 PM Reply Like
  • MarketGuy
    , contributor
    Comments (3983) | Send Message
    please...this is a calculated pump by the players.
    25 Aug 2010, 02:42 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4290) | Send Message
    Perhaps in a fit of desperation, Obama will socialize all mortgages, guarantee everyone a home but take back the deeds.
    25 Aug 2010, 02:50 PM Reply Like
  • Morg
    , contributor
    Comments (250) | Send Message
    The housing market could be trash for a long time and not necessarily harm homebuilders. My reasoning is that because of the drop in property values and material pricing these builders should be able to (eventually) produce homes cheaper than a few years ago and sell them at a profit. This is despite the final price may not be as high as at the market peak.


    The truly screwed individuals are homeowners who purchased their homes at the highs and are now seriously underwater. The builders will likely exacerbate the issue by providing more inventory at lower valuations (final sale price - lower land cost and lower material cost = decent profit margin), which will only further suppress home value appreciation on a national level.


    Homebuilders may actually be an intriguing contrarian play.
    25 Aug 2010, 02:50 PM Reply Like
  • coloneldebugger
    , contributor
    Comments (910) | Send Message
    how much of these quarter end numbers include the end of the uncle sam handout for homebuyers? whether actual sales or just the usual accounting fantasy sales recording.
    25 Aug 2010, 03:22 PM Reply Like
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