In 2011, an AMEX survey found 64% of homeowners planned to embark on a home improvement project, focusing on do-it-yourself projects and spending an average of $3,400.
Fifty-six percent of Americans expect to spend more or the same this year as they did in 2011, according to the latest American Express Spending & Saving Tracker.
So good news for Home Depot and related companies.
As long as incidents like this are legion;we are no where close to the Housing Bottom.
back2basicz
3/7/2012 10:36:15 AM
Sherri,
I don't know if you heard about the Rittners and their Million Dollar Mortgage on which they have'nt made a SINGLE Mortgage Payment in 5 Years!!!
I am not joking
http://www.washingtonpost.com/local/a-million-dollar-mortgage-goes-unpaid-for-years-while-couple-fights-foreclosure/2012/03/01/gIQAb4DBpR_story_1.html
Incidents like this are legion all over America today and stupid laws(coupled with Lenders who don't want to foreclose because they are so much underwater on the existing loans) & helped along by Morally Bankrupt Congress is looking to pass this Obama Legislation which just loves doling out Taxpayer Dollars as if they were created out of thin air
[Oh Wait,They actually are!!! ]
http://www.marketwatch.com/story/white-house-unveils-mortgage-relief-plan-2012-03-06
Which actually amounts to nothing but another back-door bailout of the Banks
,coupled with a Massive Slowdown Globally underway just now
http://www.investoruprising.com/author.asp?section_id=1296&doc_id=240017&#msgs
Mean,I see a major Roadblock to US Housing recovering and strengthening from where it is today.
Sure,if we do get a Hyper-Inflationary crisis (where the US Dollar goes Bust);then most definitely Housing (and especially the Land underneath it) will do very well.
The other way that Housing would do well is if our Population swells super-fast(by Immigration or Birth);but I discount that possibility too.
Housing might as well have Hit Bottom;but the road back up(and for Home-Builders to do well you need Demand-Which is currently non-existent).
Regards
Ashish.
Re: Building Stocks have had a huge run
Scott Raynovich
3/5/2012 11:03:12 PM
Whoops! Sorry -- senior moment.
And yes Home Depot is still a value.
Scott, I was talking about Home Depot.
Re: Building Stocks have had a huge run
Scott Raynovich
3/5/2012 3:41:54 PM
Noreen -- not sure the large homebuilders have a large remodeling business.
Like I posted the other day, I think the worst of the housing decline has already occured. But seems to me after a 60% rally many homebuilder stocks have priced a lot of recovery in.
Typically I would agree. But during the recession even remodeling stalled. Now it is picking up, both by people who are remaining in their homes and by those buying new properties.
Re: Building Stocks have had a huge run
ProfR
3/5/2012 3:04:21 PM
Same thing with stocks like Home Depot. Sometimes their sales are higher when new home sales are low - people spend money fixing up and expanding the homes they have.
Re: Building Stocks have had a huge run
Value Hiker
3/5/2012 11:45:26 AM
The best time to buy home builder was three months ago, not now. At current valuation, it is hard to make profit unless you are investing for real long term, like 3-5 years. Most home builder are still bleeding money, and they will continue bleeding for a while.
Re: Building Stocks have had a huge run
tokyogai
3/5/2012 10:10:28 AM
Scott- I agree completely. Many of these stocks have gotten ahead of themselves as investor have been hoping for a recovery. I would wait for a pullback.
I dunno, building stocks have already had a huge run. This idea has been priced into the market. I think this is an example of the market front-running the data.
I think you have to wait for a pullback. For exampe, Toll Brothers (TOL), one of the better managed builders, is up 60% since last October!
The blogs and comments posted on Investor Uprising do not reflect the views of Investor Uprising, PRNewswire, or its sponsors. Investor Uprising, PRNewswire, and its sponsors do not assume responsibility for any comments, claims, or opinions made by authors and bloggers. They are no substitute for your own research and should not be relied upon for trading or any other purpose.
Tweet This