Homebuilders—Why Real Estate Analyst Is Sticking to the Sidelines

This home-selling season is going to disappoint investors relative to expectations, said Buck Horne, housing and real estate analyst at Raymond James.

“We’re on the sidelines right now in terms of the homebuilders and we’re neutral on Lennar [stock] right now,” Horne told CNBC.

Lennar posted a drop in quarterly orders and revenue Tuesday, signaling continued weakness in the housing market.

“Sales are still sluggish and we’re still seeing the incentive levels that were in place about six months ago in the numbers right now,” said Horne.

“Orders were down 12 percent and management commented that spring selling season remains very sluggish.”

Second Opinion:

Scorecard—What He Said:

  • Horne's Previous Appearance on CNBC (Feb. 16, 2011)

More Market Intelligence:

CNBC Data Pages:

CNBC Slideshows:


Major Homebuilders:


Pulte Homes

Toll Brothers

D.R. Horton

Beazer Homes


Horne does not own shares of LEN.

Raymond James expects to receive or intends to seek compensation for investment banking services from Lennar in the next three months.