OPEN - Housing Industry Valuations. They Range From Insanely Cheap To Insanely Expensive
- The homebuilder and mortgage insurance stocks today sell at P/E ratios that are fractions of the S&P 500. Realtors retain high P/E ratios even after significant sell-offs.
- I review the assumptions investors are implicitly making about the housing market and argue that they are largely driven by emotion, not facts.
- I continue to recommend as Buys, homebuilders Pulte, M/I Homes, and Hovnanian, and mortgage insurers MGIC and National Mortgage.
- I continue to recommend as Sells realtors Redfin, Zillow, and Opendoor.
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Housing Industry Valuations. They Range From Insanely Cheap To Insanely Expensive