Would you buy stock in home builders

no chance

Was it in one of their "Stocks to Buy Now!" articles? Kiplinger's, Money, etc., don't have good track records when it comes to recommending specific investments, and to verify this you may want to see what those publications said a few years ago.

Economist A. Gary Schilling is pessimistic about the housing industry and in this MarketWatch article [marketwatch.com] says home construction went from 6.3% of GDP in 2005 to just 2.2% now. He's pessimistic about the US economy overall, partly because of the housing market, which he said could take a decade to recover after hitting bottom (which he thinks hasn't happened yet). Shilling isn't a genius who's always right (nor does he pretend to be, unlike some highly political economic pundits), and the article mentions some of his past errors.

I don't understand the appeal of publicly traded home building companies because all builders use the same construction methods and lack cost advantages over smaller builders, and apparently the only thing they can do better than smaller firms is to buy large tracts of land near urban areas.

housing hasn't bottomed out till the million homes in forclosure stop.

Just when you think you see the bottom of the abyss, someone comes along and steals [more of] your money.

Think: Japan.

Quote from PRINTABLECOUPON : housing hasn't bottomed out till the million homes in forclosure stop.

Optimist.

home builders are still losing money

Quote from vaultaddict : no chance

This.

Homes will be bottoming out in about 2 years. In some markets.

The best place to put your money right now is in a mattress after paying off as much of your debt as you can (including your mortgage).

Or buy things that have real value such as guns, ammo, precious metals, etc (NOT numismatic value coins).

I really would not trust the market right now in spite of what some "experts" are saying. It is entirely possible for the market to make a 50% downward correction in a very short (weeks) timeframe.

No. Booms are a great time to invest in these companies, they get alot of work, leading to needs to get more cash to hire workers they can barely verify their carpentry skills, and the price goes up. Now's the time where no one wants another cookie-cuter home, and they're trying to dodge those calls to repair their shoddy construction.

Housing market may be bottomed (or not) but it doesn't mean the price will goes up. The price may stay low for many years as there are just too many foreclosures and empty houses.

Quote from slipgate : The best place to put your money right now is in a mattress after paying off as much of your debt as you can (including your mortgage). Or buy things that have real value such as guns, ammo, precious metals, etc (NOT numismatic value coins). I really would not trust the market right now in spite of what some "experts" are saying. It is entirely possible for the market to make a 50% downward correction in a very short (weeks) timeframe.

LOL, yes, everybody, put your money under your mattresses and stock up on guns, duct tape, and instant noodles.