Is The New Housing Bill The Antidote Homebuilders Needed?
The new federal housing bill offers a little to everyone hurt by the downturn. There is a boon to lenders, another to borrowers, and something for the homebuilders.
But while the lenders and borrowers still have some uncertainty in their future, homebuilders have suffered most of their pain already. With stock prices down nearly 75 percent for the sector, they are ripe for a rebound.
The Wall Street Journal agrees with this sentiment:
For everyone else, the smart play is probably to invest in the homebuilding stocks. They’re already flat on their backs. The sector overall has fallen by about three quarters from its 2005 peak, and history says that after a bubble has burst that’s usually a good time to buy. It’s like buying the Nasdaq near the lows in 2002.
Valuation measures have to be taken with a pinch of salt in these markets, because net asset values are so volatile, but on current numbers Toll Brothers is trading for about 90% of book value; Hovnanian for about 60%; Lennar, 50%; and DR Horton, 80%. These are rough figures. via R.O.I. - WSJ.com.
My Representative is one of the infamous eight Republicans who voted to support this disgraceful legislation, Frank LoBiondo in South ...
When selling our homes, what takes place should be between the seller and the buyer. Not the government. ...
Yea I guess I would be mad or should I say disappointed if I missed the cut off date for ...
If you haven't read this bill I could easily see how one could support it. I mean the bill ...
Pain is gain. I really support this, and the change may be hard but it has to be done. ...
I can't tell you how many people I've talked to in the past week who are completely unaware that the ...
The liberal government policies have facilitated the expansion of the foreign involvement in the Real Estate Investment sector. 
We all know EPA has the most murders per 100k ever. 175 murders per 100k. 
I am confused...I closed on my house 1 April 2008, I did not get $7500 pay back or $8000 no ...
I am a person that has been qualified for a loan and really would love to see this enacted. ...
Pingback by False Positives In The Housing Rescue Plan on 1 August 2008:
[...] people have been studiously searching for positive aspects about the recent Housing Rescue Plan. As my regular readers know, I feel that this plan is an absolute bust in every way, and ultimately [...]
Comment by Gustavion on 1 August 2008:
Homebuilding stocks must be a good buy now. Can they even go much lower?