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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: orkrious who wrote (48738)	2/20/2006 2:25:02 AM
From: John Vosilla	Respond to of 306849

Most builders stock prices are still at least twice what they were at the beginning of 2004 when land prices were exploding upward and inventory levels were quite low. Today they are buying land at bubble prices and inventor is building at a dramatic clip. They all seem to be cash flow negative even in the best of times.. What's gonna happen in the worst of times with a slowing economy, tons of overpriced land controlled with debt, tighter lending standards and rising long term rates a possible future? Builders build till they go bankrupt..