[quote=SK in CV][quote=outtamojo]
Imo it doesn’t matter what builders believe. Lack of building and less than trend household formation are bullish for prices in the far out future.[/quote]
I think you mean bearish, no?[/quote]
What he means is that with more American households in the future, more new houses will be needed for them to live in. Therefore, long term, new housing is bullish.
What he doesnt give is a time line. Who cares if housing is set to be bullish ten years from now, which companies survive that bearish decade is really hard to know from an investment standpoint, and even the dumbest home builders can get their act together in a decade.
But in general I agree with him, at somepoint in the future housing will boom again.
