Big on Credibility

Homebuilding Stocks: Rising With Reason

Any published article that ends with "Disclosure: none" is without merit.

It should be assumed to be a biased article. As mentioned by "jdub", " 'The' bottom is nowhere in sight. Most homebuilder stocks are still significantly over valued. Too soon to buy I think."

New home sales missed the estimate in a big way this morning. Also today, Pulte homes reported a wider loss than expected by analysts.

What everyone needs to remember is that this time, the housing bubble was so big that it will take much longer than "usual" to work off the problem. As for the statement made by "DonPaul Olshove" that "The nice houses near the beach in sunny California have already passed the bottom.", I have to let any reader know that is simply not accurate. California had massive growth in home values and has only had some of the air come out of its bubble. Home values are still well above the previous low (even at the beach). So high above the previous low that it's quite clear California has longer to go to work off its housing bubble problem than any other region in the U.S.

Take a "reality pill" everyone. The second half of '08 turnaround that some are suggesting is simply not a realistic expectation.