It's very unlikely that the home builders to return to their old time high because the fed will not lower the fed funds rates to %1 gain, in fear of creating another bubble in the housing market. Therefore, if you follow the homebuilder charts back before the bubble formed you would see that the homebuilders would need to drop another %50 before they will be worth buying. But do not expect them to return to their old earnings power when interest rates were %4 on a 30 year mortgage. Good luck guys.
The negative sentiment on this board recently seemed to be a capitulation. I don't like buying until there is blood running in the streets - right now there appears to have been a massacre. I got in below $25, seatbelts buckled. So do you figure the market has priced in the worst and then some?