Sam Sara....checked NVR's rap sheet and noted its huge growth rate, low PE, and the fact that the stock price is already cut in half from its high.
If insiders are selling (and I know who the insiders are and where they live, I can't find evidence that many are selling right now, but maybe your source is better than mine)....The last or first quarter of the year is probably always the worst for builders. From what I can see, some sold a long time ago....not planning to sell now.
At any rate, you might want to keep an eye on local housing inventory and interest rates if you are planning to postpone a home purchase. There still aren't many homes for sale in Northern Virginia and interest rates are incredibly low by historic standards. I can't imagine a surplus of homes coming on the market suddenly, because this begs the question of whether many homeowners would want to relocate or buy something else locally to live in right now???? *Where dey gonna go and get a better deal than what they already have????*
I'm a bit concerned personally that shortages of certain goods and services can result from our present national condition....this will mean price inflation....and eventually a rise in interest rates. I vividly recall the days when mortgage interest rates would rise hourly...not daily or weekly. It doesn't do any good to buy a home at a "reduced" price if you pay more for it in interest rates.
If you already see a large number of homes out there that would meet your needs, that's good. But if you think it will be hard to find the home that you need or want, it might not get any easier in the future. This isn't the early 1990s, by any means.
Am contemplating a return to actively selling real estate when there appears to be a chance of having a decent inventory of good homes to show to buyers and a decent inventory of good listed homes to sell for the owners. The past few years of scarce housing supply and excessive numbers of buyers have not been *my* type of market.
This condition isn't here, yet, and might not resurface. Americans will get complacent again if they feel the prevention of terrorism is under control, life could return to normal, and housing supply will continue to be lower than housing demand.
Best of luck in whatever course of action you take! |
