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Are there any worthwhile homebuilders?

Posted Oct 31 2007, 07:51 PM by Matt Koppenheffer
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KB Home is down 51% from its high for the year. And it's not alone.

Beazer Homes: down 77%
Levitt Corp: down 88%
TOUSA: off 94%

I could continue.

Are there any homebuilders out there that are still worth the paper that their stock certificates are printed on? On The Motley Fool's CAPS service, blogger floridabuilder -- an insider in the industry -- suggests that there are a handful that will be winners if we avoid a full-on recession.

His potential winners include KB Home, MDC Holdings, Ryland, Toll Brothers, and NVR. The absolute worst in his estimation? WCI Communities, Levitt, TOUSA, Dominion Homes, and Comstock.

For more, check out floridabuilder's blog, where he dissects the homebuilding industry as well as the individual companies.

(Full disclosure: I do not have a financial position in any of the companies mentioned.)

Comments

 

Great!  End all that over-development.

there any goverment program that can help me no loose my house that is for fourcloser right know

I have been a mortgage broker for years. In my opinion builders are the greedest of the industr, more than my industry and the realtor industry. They want to make money off the land, house lending title and escrow. In Ca. the builders wanted all the consumers to ues their lender. That was not always the best deal for the client.

I have actually seen signs that said use our lender and you need a $5,000 deposit. Use an outside lender you will need a $10,000 deposit. Even now with them hurting as much as they are, most of them still try to get people to use their lender. And as you know some actually own their own mortgage company. As far as I am concerned they are where they are because of greed.

As a past construction worker, it is good for a lot of these mega builders to go by the wasteside. Thousands of small mom and pop builders were ruined by these bank/gov.  manufactured cookie-cutter mega builders who didn't care nothing about quality, efficiency, enviroment, or design. With their easy access to paper money they bidded up land, housing, and materials to make a quick buck. Eventually, we all reap what we sow.

What is your take on Gemcraft Homes?   Looking to build a Gemcraft Home in PA.

If there are no Jobs how can anyone expext the housing market to improve. The real truth is there are no good paying jobs that would put people in a position to buy homes, I should know I am one of those people who use to make 80K a year. In the mortgage industry, now I am lucky to be offered 10.00 per hour. I can't afford to make my house payment on that kind of money. Where is owr great President in all of this??? Sending more money over seas for his private war. Truth is he could care less about the American public and what they are going through.

The Jobs that are out there are very low paying jobs. I have been looking for 4 months. I have gone through my savings and I am about to loose everything I have worked for for 40 years. If the news media wanted to get on the band waggon and report something, they should report that out of all the foreclosures in the country, the true percentage is about 1% of all the loans in servicing, if the lender sold those properties at 50 cents on the dolla, it would be 1/2%. lets tell the truth. Our president could care less, and he will leave office and a mess for the American public to have to clean up.

I think homes prices are too high and property taxes increasing every year.  Those things make much of the people think twice bfore buying a house.  Here in Florida those two factors are killing the industry.  If you are retired thats what you have to take in consideration.

It is time to have real home prices, in Florida.

homebuilders did it to themselves. By having control of home loans.

If you bought a new home, as a buyer you had to use the builders liar loans Dept.

or you paid penalty to use your own homeloan.

now homebuilders are crying the blues,  BOO, HOO.

as a future homebuyer I am hoping to have buy a home at the REAL price with a FHA loan.  

For over 5 years I have watched the big building firms "stick" the buyer with sub-standard constructions and no desire to even attempt to satisfy the potential buyer, despite the fact that the buyer was willing and able to pay.   I will be perfectly happy to watch frauds like the Toll Brothers and Poulte go bankrupt.

As a potental buyer, I tried repeatedly to purchase homes by both of these builders and was told to take the home as is because someone else wouldl be more than willing to purchase it.  I was unwilling to pay $450K for a $250K home.  Those homes are now on the market for under$240K.    

it is the hombuilders faut their stocks are in trouble they jacked prices up example

centex homes 4100 sq ft 650,000 in 2003 in 2005 2006 that same house 860,000

give me a break and the rest of them followed. So good to bad. potential buys had to go for Jumbo loans

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