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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (50196)	1/19/2006 9:13:06 AM
From: orkrious	Read Replies (1) \| Respond to of 110194

Starts and permits are certainly weakening. Housing starts for Dec came in at 1933k vs 2035k exp. Prior revised to 2121k from 2123k. Building permits for Dec came in at 2068k vs 2100k exp. Prior revised to 2163k from 2155k.

To: russwinter who wrote (50196)	1/19/2006 11:55:46 AM
From: Ramsey Su	Respond to of 110194

DHI targets first and second time buyers. That is going to be there biggest problem, in my opinion only of course. Yesterday's headline story: usatoday.com I think as credit tightens, DHI is going to be hit by buyers who will no longer qualify. If the economy slows, then this group may vanish all together. Margins that are tight now are going to be tighter if that occurs. In addition, they are pushed to the fringes geographically while increasing density to the max. The more condos, PUDs, low rises, high rises that they get into, the more they are exposed to future defect lawsuits as well as other factors such as higher gas prices.