| There is a rising consensus that homebuilder stocks have seen their highs for the cycle. But I'm of the mind that maybe this isn't so cut-and-dried. Consider the widely accepted reasons for why the housing market is about to enter into what many are calling a "well deserved correction," which is best translated as perhaps an outright crash similar to what happened in 2008: - Rising mortgage rates
- Rapidly rising home prices shutting out significant numbers of potential buyers
- Sales figures already showing signs that weakness lies ahead
Sure, it's hard to argue with a 14% decrease in home sales on a year-over-year basis as we saw in November. Simultaneously, the S&P Case-Shiller index of home prices shows that although prices continue to increase, the year-over-year rate of increase may have topped at 20% as of October. But here's where it gets really sketchy for the bears. Those heady data points are ignoring the persistently bullish supply and demand scenario for housing. Trade What You See and Love the Wall of Worry I will readily admit that my perception of the housing market, and thus the potential upside for homebuilder stocks, may be tainted by the fact that the state of Texas, where I live, continues to attract transplants from other states and that, in turn, the continuation of the building boom here may not be representative of what's happening around the country. Continue Reading... Here | 
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