Fri, Apr 18, 2014, 7:59 AM EDT - U.S. Markets closed for Good Friday

Recent

% | $
Quotes you view appear here for quick access.

PulteGroup, Inc. Message Board

  • hythere2005 hythere2005 Apr 4, 2005 1:00 PM Flag

    Looming Problems!

    Now more than one in three owned homes are not primary residences. And bulls want us to believe that housing is hot due to supply constraints � LOL! Sure, housing is still relatively hot, but rents are very soft. Most longs don�t understand how a feeble rental market will eventually undermine home sales, and force home values down in much of the country. The long overdue cycle has not completely matured yet, but it will.

    Another problem longs have is real incomes are not rising. Rising household incomes have a lot to do with home value appreciation and sales � this fact was proven in the seventies and eighties when many mothers were forced to abandon their homemaker duties to seek employment and increase household incomes. Despite rising rates, home values remained strong � this was due to rising household incomes.

    Another problem longs have is the homeowner ATM is closing for business. Many would be foreclosures were avoided (or deferred) during the last 5 year bull market. Those homeowners that were financially irresponsible or suffered a job loss, etc � were able to seek much needed capital by refinancing and extracting perceived home equity. This is the primary reason why Americans are now spending more than they save � and I would bet that if there�s anything that keeps Alan Greenspan up it�s this issue. Eventually these postponed foreclosures will come to market, forcing prices down and making banks rethink their extremely liberal lending tendencies.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
 
PHM
18.71-0.19(-1.01%)Apr 17 4:02 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
Weibo Corporation
NasdaqGSThu, Apr 17, 2014 4:00 PM EDT
Triangle Petroleum Corporation
NYSE MKTThu, Apr 17, 2014 4:01 PM EDT