The homebuilders that supply the first time buyers are doing well today in a down market. The issue is these first time buyers have run out of existing home inventory and have moved to buying new rather than buying a foreclosure and investing in the cost to repair it to livable standards. This is going to expand to move up buyers next which PHM is positioned to capture that market too.
With Zillow now coming out and saying buying beats renting in most metro areas, this will bring more buyers out and continue to put more demand on the builders as we head into the slower holiday season. This year we may not see this slowdown.