So, here are the CEO of the two largest home builders, Robert Toll of toll brothers (TOLL) and Ara Hovnanian of Honvnanian (HOV). Let’s see what they have to say.
Toll:
Hovnanian:
Now, here is what matters. Neither Toll or Hovnanian have been very positive in the past and both are not jumping up in down in glee in these reports. But, and this is the big point. Both are seeing the deterioration of conditions waning. Toll said “it doesn’t feel good but isn’t getting any worse.”
This seems to back Wilbur Ross’s claim yesterday that he sees housing conditions lasting “well into 2009”.
Hovnanian mentioned the $7500 tax credit and compared it to the $2000 credit back in 1975 that was very successful.
Both Honvnaina and Dennis Gartman (“Squawk” guest) mentioned the “baby boom” currently underway in the US that is always bullish for housing. The thing that struck me was that both homebuilders were very calm and breathing rather easily as though they both, while they would not come out and say it, felt the worst was over..
Disclosure (“none” means no position):None
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