Is it safe to buy home builders?

NVR stock price is unusually expensive compared to all other home builder stocks. The activity seems to be dominated by insider trading. Is this safe, or should this be something to be cautious of?

My answer is- Not with My Money or Your Money. Many People People in Many States are Finally now considering Developers to be the Bullies on the block with theyre relentless push to Overide Growth Managment Laws bringing Pollution , Congested Traffic, Lower Water supplies, Higher Taxes, Shooting of Eagles in their nests and running over All types of Wildlife with Bulldozers, starting Wildfires that get out of control and generaly a Ruined Atmosphere for smaller communities. People are now signing Petitions of Moritoium to get rid of these Developers and Builders that have long taken advantge of " under the table Bribes to local Governments. I signed a petition myself and encourage others to do the same and to attend Local Planning meetings and Make Your Voice Loud and Clear. Governments Will listen if People Pack the Hall in Numbers.

Please don't full yourself The Housing market is going to get a hit in the next three months when all the banks release more homes that people that have been living in there homes rent free. When they release this figure it's going to floor the investment community. When those toxic loans are taken care of then we'll see the Housing market come back. Just a word of caution.

Reviving the Housing Construction industry at a time when Foreclosures are everywhere and Many More to come makes absolutely no sense at all. Just look around and see the " For Sale" Signs. The Real news they are Not telling you is- the same amount of Foreclosures that occured last year up to now will occure next year also. Also, If you are wondering why your house is Losing Value you can Blame Freddie Mac, Fannie Mae and State and Local Government for Allowing the Builders to Overbuild and Flood the Market with Unwanted Particle Board Houses. In states like Florida and California this Overbuilding Screwed the Entire State. New Towns and even new Counties and Cities sprung up from Hell during the last 30 years and many of them have economicly collapsed and have been abandoned leaving behind Useless Particle Board buildings and a Ruined National Economy. Pollution is Everywhere and Raw Materials Are Near Depletion. It is time to End the practice of relying on the Housing and Construction Industry as a means of Speculation, employment or Economic gauge. The Truth is this Industry is the Biggest Waster of our Natural and Economic Resources which are Now Near Depletion

Damn right PAUL could not of said it better. The cost to maintain these homes is a farce to the tax payer. Can we build more homes than we have people to live in them is what I would like to find out. Talk about digging a hole to no where our planning departments in local areas need to GOOOooo. Vote the bastards out and put people in there that will work for the community not for the fed a holes in Washington that know only GREED,,

The time to buy home builder stocks was 4 months ago. If you did, now is the time to be taking some money off the table. If you didn't, you've missed the boat.

If anything, buy FRE and FNM. I bought at 50-60 cents a share during the worst of the housing crunch but have rebounded nicely into the $2/share range in the last month. And there will be much more yet to come as Housing continues it's climb out of the ditch.

I would not be swayed by the increase in sales. Forced sales and foreclosures will create positive activity. As for the new start figure, this would be a concern based on the glut of homes available and the high number of homes on the bubble as forced sales. While the number of available homes increase, it will certainly help the buyer as the supply will overshadow the demand driving prices lower. I wouldn't be so positive regarding any home builders. There major problem is they are sitting on land they paid to much money for and are forced to do something. Not a good reason to build.

I feel that it is ridiculous for any lending institution to lend money to any home builder to build homes that are not needed at this time. For what? Another glut in the market - more to foreclose on and then be sold to foreign interests. All of the Homebuilders sold the past homes in an inflated market to begin with, made a fortune and in turn Wall Street with their greed fed the monster. We all know this to be fact.

It may be a while before the builders produce such great profits. I could see more transactions but because prices are lower the builders bottom line may still suffer for a while.

For a free list of home builders in Lewis Center, OH visit

http://www.lewiscenterproperties.com

Why would anyone want to even build a new home right now? Until such time as home values stabilize, and stay stabilized for at least a year. By the time you're finished building your new home. Its going to be worth less then your final building cost, the way the overall housing market is going. My home was worth, and appraised for $625,900 in 2007. Now I'd be lucky to get $500,000 Most homes in my area/subdivision that were in the mid $500,000 to mid $600,000 price range. Have been selling for under $500,000

And when these homes were built from 1998 to 2001 the base new home building price's started at $285,000 to $365,000 depending on the model. These prices did not include the cost of the lot or upgrades.