Recovery? We are still in decline. We have to start a recovery in order for it to be in jeapordy, no?
Foreclosures are still increasing. New housing starts are still dropping.
If your message was entitled "Housing recovery may be farther away than we thought"...I'd agree.
Homebuilders are managing their balance sheets to control their income statements and cash flows to a varying extent. But none of them are showing any revenue growth or real margin recovery of any kind that is not purely related to tepid sales of previously written down assets.
And lets add one more troubling sign, all building supplies costs are rising. Lumber is up 39% in the last year. This could be somewhat offset by labor cost reductions/layoffs, but overall its a real margin killer. Would any of you bulls on this board really consider becoming a homebuilder to pay your own bills in the current housing market??? i SERIOUSLY Doubt it.