I have been researching the homebuilders as a possible contrarian (and long) investment.
But the increase in materials/supplies and labor costs coupled with ever-higher mortgage rates, which serve as a detriment to “moving up” purchases and, in general stretch affordability (pricing out first time buyers) makes it impossible for me to bottom fish at current levels.
I see rising homebuilders’ incentives and forward weakness in the top and bottom lines.
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