Maria Bartiromo's Investor Agenda

Published: Tuesday, 18 Aug 2009 | 6:24 PM ET

Text Size

Call it a marriage gone right! Pulte Homes takes over Centex

CTX loading...

Quote  |  Chart  |  News  |  Profile

[CTX  Loading...      ()   ] in a $1.53 billion deal. This transaction would create the largest homebuilder in the country and $350 million in savings to boot. 

In an exclusive interview with Maria Bartiromo, Pulte

PHM loading...

Quote  |  Chart  |  News  |  Profile

[PHM  Loading...      ()   ] Chairman & CEO Richard Dugas that the tie-up creates an excellent brand over the long-term while boosting exposure in Texas and the Carolinas.

When asked about the sector overall, Dugas said "the homebuilding sector remains fairly stable." Dugas also sees improvement within the industry in 2010.

One key focus of stabilization remains on pricing. Zillow reports that 60 percent of all homeowners believe their home lost value over the past year while in reality 83 percent lost value.

Even more shocking is that 81 percent of homeowners believe their own home's value will not fall over the next six months. Most of the analysts out there predict another 10-15 percent drop in prices before we hit bottom.

More Market Insights:

• Realty Check Blog with Diana Olick
• The CNBC Stock Blog
• Trader Talk with Bob Pisani

When asked about pricing, Dugas told Maria Bartiromo "prices will not fall a lot from here…if it does at all."

Dugas says government reports are lagging indicators versus what homebuilders see on the front lines day-to-day, which is more telling. And for investors looking for the inside edge on housing, Dugas unveiled the most important indicator on the housing front. Drum rolls please? The answer is new orders!  

_____________________________
CNBC Data Pages:

• The Dow 30 in Real Time
• Oil, Gold, Copper, Natural Gas Prices
• Bonds/Treasurys Prices and Yields

_____________________________

Questions?  Comments? Write to

Print

Email

Text Size