20% of Homes With Mortgages Have Negative Equity

Home prices have fallen every month since Jan. 2007…

So, what does it mean? Housing will NOT rebound until late next year at the earliest. If you are thinking about buying home builders like Centex (CTX), KB Homes (KB) or Toll Brothers (TOL), I would think twice as the fundamentals of their industry do not look to improve anytime soon. With 20% of the market effectively sidelined, it does not bode well for those hoping to sell them new homes.

Disclosure (“none” means no position):None
Visit the ValuePlays Bookstore for Great Investing Books