Why short a housing stock when you can short an options laced company. A stock that increases shares outstanding 20 percent a year with no revenue growth.
Negative news on homebuilders are already priced in. I saw on t.v. special this week on Fox recommending selling homebuilders. There is a reason why homebuilders have p/e ratios less than 10. But, most people I know would love to move out of their house into a new house, similar to way people buy new cars. There is not much difference between new cars and new houses.