New Home Prices Facing Growing Pressure
So will the big builders continue to slash prices in order to compete?
"Commodity prices remain elevated, and that doesn't give builders much room to cut prices too much without really sacrificing profit margins again," says Peter Boockvar at Miller Tabak.
That's why analysts are being very selective in their approach to the home builders and are "muting" their outlooks for 2012."This is shaping up to be the worst year on record for the single-family housing market," says Patrick Newport at IHS Global Insight. "New home sales (data start in 1963), single-family housing starts (data start in 1959) and single-family permits (data starts in 1960) will all set record lows in 2011. Existing home sales may avoid the cellar, but only because a third of them are selling at "distressed" prices." So what will get housing back on a strong foundation for growth? All the analysts agree: job growth. -- Written by Diana Olick, CNBC Real Estate Reporter
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV