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).