| Warning from the troubled housing sector |
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patanx
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Cash: $ 3.75
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Joined: 11 Sep 2006
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| Warning from the troubled housing sector |
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Investors were looking for direction following another warning from the troubled housing sector as they waited for the latest reading on consumer confidence.
S&P and Nasdaq futures traded mixed about 90 minutes before the open after being lower in earlier trading, pointing to a struggle at the start for Wall Street.
Concerns about the weakening housing and home building sector could get fresh attention Tuesday after Lennar the nation's No. 3 homebuilder, said Tuesday that fourth-quarter results will fall far short of forecasts.
CEO Stuart Miller warned in a statement that it's "not clear that the homebuilding downturn has yet found a floor."
More of this story here...
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Tue Sep 26, 2006 8:38 pm |
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LottomagicZ4941
Senior Member
Cash: $ 1.66
Posts: 2633
Joined: 02 Dec 2004
Location: Earth
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If housing goes down 10 to 20% it will just be a correction.
Like the teck boom realestate has gotten out of hand.
I was late getting into REITS but I don't plan on being late getting out. Already moved my REITS to New Era.
Rental unit is also up for sale. Could have gotten more last year. At least that is what the real estate agent is saying.
The teck boom did go on longer then expected.
Perhpas real estate won't end it's run just yet. But I'm not going to bet the farm on it.
The articale wasn't that long you might as well given us the whole thing
"Stock futures point to mixed start after rally lifted blue-chip gauge to 5-1/2-year high.
Investors were looking for direction following another warning from the troubled housing sector as they waited for the latest reading on consumer confidence.
S&P and Nasdaq futures traded mixed about 90 minutes before the open after being lower in earlier trading, pointing to a struggle at the start for Wall Street.
Concerns about the weakening housing and home building sector could get fresh attention Tuesday after Lennar the nation's No. 3 homebuilder, said Tuesday that fourth-quarter results will fall far short of forecasts.
CEO Stuart Miller warned in a statement that it's "not clear that the homebuilding downturn has yet found a floor."
The company also reported a sharp drop in third-quarter earnings. Investors and economists also will be watching the latest reading on consumer confidence, due shortly after the stock market opens, from the Conference Board, a
private research group.
The nation's No. 2 home improvement retailer Lowe's warned Monday evening that sales are trending below its expectations, although it said its full-year earnings will be at or near the low end of its prior guidance.
Several economists forecast that lower energy prices helped the confidence index rebounded to 103.0 on average in September from 99.6 in August.
Peter Cardillo, chief market strategist SW Bach, said futures are being helped by the anticipation of a strong consumer confidence number, coupled with portfolio managers making end-of-the-quarter adjustments in their holdings.
Treasury prices edged lower, lifting the yield on the 10-year not to 4.57 percent from 4.54 percent late Monday. Bond prices and yields move in opposite directions.
The dollar was up against the euro but slightly lower against the yen.
The major indexes in Asia closed lower, while stocks in Europe were up in early trading."
Non promotional Facebook Jail regular forum inquiry
Promotional post in advert section for new Facebook group for those building a downline
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Sat Oct 14, 2006 4:25 pm |
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efflandt
Senior Member
Cash: $ 80.45
Posts: 401
Joined: 25 Apr 2005
Location: Elgin, IL USA
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I did have a US Real Estate mutual fund last year that was into home builders. I was lucky to bail out in January when it was down only 9%. It is now down another 9%.
I do have two REITs, but they are commercial, not home builders. One bought in April is up over 4% and pays a 9% dividend. This other bought July and early Oct. is up 10% overall and pays 8%.
If I had bought them last year I might have been disappointed, because they were depressed earlier by rising interest rates and cooling unrelated home sales (for no apparent reason, which is why their dividends are good).
The US Property fund in my 401(k) is very stable (over 10% 5 and 10 yr ave, 11% ytd), but it owns commercial property and apartments (not a fund of stocks). People who cannot afford homes still need some place to live (apartments). But last I looked, apartment REITs were overpriced.
I figured that oil and oil stocks would get a little bump Friday the 13th on news about OPEC organizing their decrease, North Sea oil rigs shut down, and Buffalo snowstorm.
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Sat Oct 14, 2006 6:54 pm |
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Stromprophet
Preferred Member
Cash: $ 26.30
Posts: 127
Joined: 09 Sep 2006
Location: Indiana
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quote:
Originally posted by LottomagicZ4941
Really it is the people living in appartments that should get the tax breaks not those of us with houses.
All the big houses being built. We need some more normal houses.
It is time that real estate have a correction.
I want my son to be able to get a decient house.
The current market is INSANE.
I think I get a bigger break living in an apartment, it's tax deductible up to 5,000 dollars of my income. I would have to pay property taxes if I owned a home.
I don't think the current housing market is exactly the same as the tech bubble. The Nasdaq still has not recovered from that.
P/E ratios of 200 or 300, are way overpriced much more than houses are now. But a correction is in order. (Unfortunately in my market I live in a little midwest town and houses just aren't overpriced, but hopefully interest rates will fall by next year when I want to buy, that's my driver)
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Thu Oct 19, 2006 8:40 pm |
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LottomagicZ4941
Senior Member
Cash: $ 1.66
Posts: 2633
Joined: 02 Dec 2004
Location: Earth
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quote:
Originally posted by Stromprophet
quote:
Originally posted by LottomagicZ4941
Really it is the people living in appartments that should get the tax breaks not those of us with houses.
All the big houses being built. We need some more normal houses.
It is time that real estate have a correction.
I want my son to be able to get a decient house.
The current market is INSANE.
I think I get a bigger break living in an apartment, it's tax deductible up to 5,000 dollars of my income. I would have to pay property taxes if I owned a home.
I don't think the current housing market is exactly the same as the tech bubble. The Nasdaq still has not recovered from that.
P/E ratios of 200 or 300, are way overpriced much more than houses are now. But a correction is in order. (Unfortunately in my market I live in a little midwest town and houses just aren't overpriced, but hopefully interest rates will fall by next year when I want to buy, that's my driver)
Wow you can tax deduct 5K of rent?
Didn't know that. Guess I over paid my taxes when I was renting.
Non promotional Facebook Jail regular forum inquiry
Promotional post in advert section for new Facebook group for those building a downline
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Tue Oct 31, 2006 7:38 pm |
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