Home builder confidence up too high?
The National Association of Home Builders housing market index comes out later today, and many think it can be too optimistic. Fortune Magazine's Allan Sloan talks to Steve Chiotakis about where he thinks the housing market is.
Allan Sloan is a senior editor-at-large at Fortune (APM)
More on Investing, Housing - Real Estate
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From Philadelphia, PA, 06/15/2009
Regret that Allen has bought into the Real Estate term "Home," when really describing a "House." Pieces of owned property are not "homes!" Would he really suggest that those who occupy apartments do not have a home?
From MD, 06/15/2009
Re: Winners and losers. Allen's perception of winners and losers presupposes that 2006 prices reflected underlying value and therefore, current prices represent a discount. If one considers 2006 prices to be inflated, then current prices may not yet be reflective of underlying value (depends what underlying value is and, thus whether we have fully corrected). In this scenario, current sellers are the big winners because they still capture outsized profits, though not as much as if they had sold in 2006. Current buyers are the losers, because they pay more than they might next year. It is all a matter of perspective colored by your impression of what has happened and what is going to happen. Personally, I don't see how anyone looking at a graph of S&P Case Shiller index can think that 2006 prices were reasonable and current prices are a discount.
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