Wednesday, April 15, 2009

Homebuilder sentiment index soars 5 points



"An index of builders' confidence released Wednesday posted its biggest one-month jump in five years in April as many homebuyers seized on lower prices and incentives and took advantage of lower interest rates and tax credits."

Back on March 27 I said to buy homebuilder stocks. The level of housing starts is unbelievably low. In 1972 the United States had a 200 million population and managed to construct 2.5 million homes. Now we have a 300 million population (and growing) and we are only building 500k homes?? This is a ridiculously low number.

I own Centex (CTX), Toll Bros (TOL), Meritage (MTH) and Beazer (BZH).

2 comments:

mortgageangel88 said...

I like CTX and BZH for sure. Thank you.

Mike Norman said...

I bought CTX about 3 weeks ago at 7 and change. It's nearing 11! However, I bought BZH two years ago, after it fell from 80 to 17, but it recently went to pennies and it's still only a buck and a half.