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Technology Stocks : Max90's LINK STORAGE to stock quotes -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (745)	10/21/2005 4:15:21 PM
From: LTK007	Read Replies (1) \| Respond to of 3906

Pricing Weakness In Months To Come': BOA thehousingbubble2.blogspot.com While most housing reports examine past months or quarters, some analysts are looking at what is happening right now. "In his report titled 'It'll get worse before it gets better,' Bank of America homebuilding analyst Daniel Oppenheim cites evidence from his firm's October real estate agent survey that 'points to deteriorating trends in most markets,' including "traffic levels that are well below expectations, a meaningful slowdown in home price appreciations, and a build-up of inventory of homes for sales, which likely indicates further weakness in pricing trends in the months to come.'" "For example, BofA said it sees particular weakness in the high-end market on a national level, and a softening of demand in Washington, D.C., two of the markets that Toll Bros. focuses on. The D.C. market..has 'pronounced weakness' according to his survey of real estate agents in the area. Weakness in the Northeast, where BofA said Hovnanian derives about 20% of estimated 2005 revenue..contributed to the downgrade of the company." "Oppenheim and Wood reduced their target price on NVR to $615 a share from $922, citing its important operations in the nation's capital. (On) M.D.C., Oppenheim is concerned about the company's exposure to 'frothy markets' in Arizona, Nevada, and California. 'While M.D.C.'s core markets are currently some of the strongest, they're also among the most stretched in the country in terms of affordability,' he writes." "'We've seen a little air come out of the D.C. balloon,' said David A. Lereah, chief economist for the NAR. As interest rates have climbed and supply has increased, Lereah said sellers have not yet adjusted their prices for increasingly cautious buyers." 'Tougher Times' To Bring 'Cleansing Period': CEO Another industry that is driving the housing market over a cliff is the mortgage business, and one executive is a little cranky lately. "Countrywide Financial Corp. is keeping its foot on the pedal despite possible road bumps ahead in real estate. The nation's largest mortgage company continues to expand aggressively in Chandler, AZ, where a 2-year-old campus already employs 1,500 with plans to hit 4,000 late in 2006." "Angelo R. Mozilo said he expects a real estate slowdown that could be marked by modestly lower home values followed by a prolonged period of flat prices. Places that have seen the most pronounced property appreciation, including California, Florida and the Northeast, could be most vulnerable to a modest price slump, he predicted, adding that flagging condominium values might be an early red flag." "Amid a mild slump and higher interest-rate pressures, mortgage refinancings likely would dry up, Mozilo said, but he added overall housing activity could remain fairly healthy. Amid a modest slowdown, Countrywide would keep growing by increasing its market share as some rivals fell by the wayside, he predicted." "Mozilo said he expected a 'cleansing period' when the strongest firms will survive. 'Over the last 10 years in the mortgage business, any idiot could have made money,' he said. 'Now we're getting into tougher times.'" "'We're here because California screwed up and continues to do so,' Mozilo said. 'California has a thing called earthquakes, and we needed another heart pumping somewhere else,' he said. 'But the other reason was California sucks.'" $100m payboy attacks California as he milks it dry.. Plans to dump his crap loans on FNM and FRE....