Mike Crofton, CEO of Philadelphia Trust Company disagreed. He advised investors to steer away from the housing market.
“All the regions are in trouble,” he said. “I think the housing market is in real trouble and the stocks are very far ahead of themselves. I don’t see them justifying these prices at all.”
Crofton said employment and credit are two important features that determine the strength of the housing market. However, with the unemployment numbers continuing to soar and banks tightening credits to borrowers who wish to buy homes, Crofton said the housing market is still in for “some very difficult times.”
Instead, Crofton recommended investors look into some home-improvement companies: "People are definitely fixing up what they already have," he said. "We're moving from a consumption to a savings-based economy."
Jim Wilson owns shares of D.R. Horton. Mike Crofton does not own shares of any of the companies mentioned above.