Internet Vs. Housing
posted by Little_Silvered at 7:34 PM
Tuesday, August 22, 2006
Previous Posts
- Update from NYC
- Wildwood Update
- A Credit Crunch is Coming
- Toll Brothers Reports Tomorrow
- Sales Way Down in North Jersey
- I Wouldn't Get Excited About Lower 10 Year Yields
- "There is a major housing slowdown,"
- 4621 Homes on Eastern Monmouth MLS
- Roach Sees a Slowdown
- ...Ans Some Brokers Charge 6% Because?
2 Comments:
Yea...those are deal area properties, but i dont think out of the area are going to fair so well....
"The parallels are uncanny - and scary. Insofar as the analogy holds, housing stocks right now are still early in a bear market that will eventually cause them on average to lose more than 90% of the values they held before the bubble burst."
If current inventory does not get absorbed, then why would anyone buy a home builder stock?
Interesting to note, home prices will fall in some areas BECAUSE of the downturn in home builder stocks. Home builders will build on land that has the potential to turn a profit because if they aren't building why do they exist? They will then have to compress prices to move the inventory.
This will only happen where the land is in an area that might support new home sales.
I suspect you won't see share appreciation, until you see a leveling off and susbsequent rise in new home and existing home prices.
Mr. Rant
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