I remember the housing boom of 2005. This is not a 2005-like environment.
For one, my neighbors aren’t flipping homes. And, secondly, the number one gauge of a kick ass homebuilder market, the stocks of homebuilders, have been sucking wind–down 10% over the past 6 month.
Neverthless, the jackasses at the NAHB continue their doublespeak.
“This upward momentum shows that our industry is strengthening at a gradual but consistent pace,” David Crowe, chief economist at NAHB, said in a statement. “With firm job creation, economic growth and the release of pent-up demand, we expect housing to keep moving forward as we start to close out 2015.”
There are 3 homebuilder stocks that have shown outperformance over the past three months: NVR, CVCO and DHI. Both KBH and WLH are the most heavily shorted, with more than 25% of their respective floats sold short.
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Jackasses indeed!
Home building back to 2005 highs and kids moving back home after college. It’s awesome! Flipping homes while staying home. What a way to live! Yeah! Now come on CEOs and major world influencers. Dip into those accounts and buy your obligatory 10% in some company of your choice!