Skip navigation
MOST POPULAR RELATED TAGS
  • TOPICS
  • SECTORS
  • COMPANIES
 

  Current Housing Indicators
CURRENTPREVIOUS
Existing Home Sales4.49m4.74m
New Home Sales309,000344,000
Housing Starts583,000477,000
Building Permits547,000531,000
HMI9UNCH9
Existing Home Prices$170,300▼ (annually)$199,800
New Home Prices$201,100▼ (annually)$232,400
 
Realty Check Video Gallery
A check on the housing market and debating whether there is a recovery, with Joseph LaVorgna, Deutsche Bank; Mort Zucker...
A daily check on the real estate market, with CNBC's Diana Olick.
 
HOMEBUILDERS TOP 10 INDEX
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...

REALTY CHECK VIDEO

» More

Current DateTime: 05:13:31 25 Nov 2009
LinksList Documentid: 30871294
Expiration DateTime: 11/25/2009 5:15:34 AM

RSS FEED

» Help

Current DateTime: 05:13:32 25 Nov 2009
LinksList Documentid: 30871303
powered by digg

Realty Check

Text Size
Oct.13
1:33 PM ET
Monday, 13 Oct 2008
Builders Bow Out Of Market Rally

Home Construction
stangls
Home Construction

I know things aren’t exactly rosy in the home building sector these days, but you’d think a 500-point rally in the Dow might nudge the builders up just a little bit. Not so much.

By noon today the Dow was well about the 500 mark, and the S&P Homebuilding index was down over 3 percent.

It seems one sector at least is still trading on the fundamentals. Traffic is just plain poor in the builders’ showrooms. Wachovia analyst Carl Reichardt, who does a Neighborhood Watch” report, says traffic is at its weakest levels since January 2001. In fact, the fourth quarter “may prove (to be) the weakest climate for new home sales since the production homebuilding business effectively began in the late 1940s,” he wrote.

Meanwhile over at Credit Suisse, analyst Dan Oppenheim downgraded Toll Brothers[TOL  Loading...      ()   ] and Ryland [RYL  Loading...      ()   ]. Oppenheim sees an additional 45 percent drop in raw land values and very weak order trends. Given continued price drops, he thinks Toll brothers is risky, given its “premium valuation and high-end focus.”

On the brighter side, Oppenheim says “the stocks now reflect overly bearish assumptions for home prices and further asset write-downs,” and he believes the stocks will benefit from less supply in 2009 as well as a potential post-election stimulus.

  • Will Bailouts Bring Hyperinflation?
  • European Nations Unveil Crucial Bank Rescues
  • Paul Puryear over at Raymond James concurs: “I think it’s time to start looking!” He tells me. He calls valuations “compelling” and is buoyed by the government’s intention to turn housing around. Wild card: consumers and the economy. As opposed to Oppenheim, he claims Ryland and Toll have the best balance sheets.

    Questions?  Comments? 

    © 2009 CNBC, Inc. All Rights Reserved

    Tools:
    PrintEmailAdd This share icon
    • digg share
    ADD COMMENTS
    Remaining characters


    Current DateTime: 01:26:08 25 Nov 2009
    LinksList Documentid: 29778428

    Current DateTime: 01:03:47 25 Nov 2009
    LinksList Documentid: 29779196

    Current DateTime: 02:05:46 25 Nov 2009
    LinksList Documentid: 29779199

    Current DateTime: 01:02:04 25 Nov 2009
    LinksList Documentid: 29779198
      Data is a real-time snapshot  *Data is delayed at least 15 minutes
    Global Business and Financial News, Stock Quotes, and Market Data and Analysis

    © 2009 CNBC, Inc.  All Rights Reserved.
    A Division of NBC Universal
    Thomson ReutersThomson Reuters