Home Builder: Steep Falloff Reflects Caution
In the wake of the housing start news, many excuses are being mentioned. Dave Wilson, Idaho home builder and president of the National Association of Home Builders is a lttle more honest.
He said "the steep falloff in construction last month reflected poor weather and caution by home builders, who do not want to create an overhang of new homes for sale in the face of slowing demand. 'Many companies are taking steps to limit sales to speculators.'"
5 Comments:
And mortgage activity is also way down despite very low interest rates.
http://biz.yahoo.com/rb/050420/economy_mortgages.html?.v=2
I've always thought that this thing would pop regardless of whether interest rates went up or not, although higher rates will certainly pop it faster.
I know this has been pointed out a million times but 0% interest didn't save Japan's housing bubble.
What is the meaning of the word CAUTION ? I can't find it in my finance and banking dictionnary ? Caution: old concept used before the New Economy was born.
I can't believe what I just heard on CNBC. The head of KB Homes said the boom was due to "Supply and Demand" that the population has increased "50 percent" since the last boom of the 1980's and construction has not kept pace.
These guys just say whatever they need to say to sustain their business.
"I can't believe what I just heard on CNBC. The head of KB Homes said the boom was due to "Supply and Demand" that the population has increased "50 percent" since the last boom of the 1980's and construction has not kept pace."
My GAWD, what a load of crap. I can't believe how much these people lie and the public just laps it up.
More Happy News: KBH and TOL getting hammered on the market again today along with a lot of other mortgage and financials.
Just saw a segment on CNBC Jim Cramer "Mad Money" where he interviewed head of DR Horton Homes. The DR Horton guest gave the same old song and dance about the market is doing great and won't cool down.
After the interview Jim Cramer cited a recommendation from another source who predicted DR Horton stock would go down 38% and also recommended selling housing stocks across the board.
Then to my surprise Jim Cramer actually said that he disagrees with the DR Horton guest and agrees with the other source, and he recommended that investors sell their home builder stocks.
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