Quote:
Originally Posted by fatpanda
Hi guys, quick question on homebuilders n property: is it the right time to buy property now or better to just trade XHB? Thanks!
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Home data is good, there is tangible recovery, however the market is soon to be flooded with bulks of foreclosed homes. You will have to do more research to figure out the pricing risks in that. It will most definitely decrease housing sales (as there is more supply but same demand), but that will need to be sustained for a few months (6-12 months, potentially) for prices to drop more. It also depends on the property and location.
Now, today's market rally is a hot potatoe! Ouch! I do, however, believe the rally run up to the 1375-1400 region is completed already with the SPX logging 1374 last Thursday. Instead of a continued rally, this most likely appears to be 1) a fake out rally, or 2) a dead cat bounce.
Next week should see more downside.