SOURCE: The Bedford Report

The Bedford Report

December 16, 2010 08:46 ET

Homebuilders Aren't Exactly Giving a Ringing Endorsement to Their Industry

The Bedford Report Provides Analyst Research on PulteGroup & DR Horton

NEW YORK, NY--(Marketwire - December 16, 2010) -  Earlier this month the US economy was dealt a surprising setback when the US Bureau of Labor Statistics announced that unemployment rose from 9.6 percent in October to 9.8 percent in November as hiring slowed down. Paul Zemsky, the head of asset allocation at ING Investment Management, argues that "The U.S. economy is all about jobs and anything that leads folks to believe that there's a better job market will be good for equities." This is especially true for the homebuilding sector. In order for the housing market to improve, analyst consensus is that a better job market will fuel buyers' confidence, as well as boost mortgage credit available from lenders. The Bedford Report examines the outlook for companies in the Residential Construction Industry and provides research reports on PulteGroup, Inc. (NYSE: PHM) and DR Horton, Inc. (NYSE: DHI). Access to the full company reports can be found at:

Homebuilders, themselves, remain discouraged about the job market and large number of foreclosures. The National Association of Home Builders (NAHB) said yesterday that builders' sentiment remained unchanged in the last month. The piece of data -- known as The National Association of Home Builders/Wells Fargo housing market index -- stands at 16. Any reading below 50 is said to imply negative sentiment about the market.

The National Association of Home Builders' chairman, Bob Jones, claims that builders are expecting fewer sales this month due to competition from sharply discounted foreclosed homes, tighter lending standards and poor overall job growth.

The Bedford Report releases regular market updates on the Residential Construction Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at and get exclusive access to our numerous analyst reports and industry newsletters.

The NAHB says it is confident that an improved job market will help lift consumer confidence in the spring and boost sales by then. While this is the sentiment of the NAHB, many industry heavyweights don't share this sentiment. When DR Horton's reported earnings last month, the company's CEO bluntly said, "To be quite candid, I don't see much on the horizon that would give anybody a great degree of comfort on the financial condition of the country. I just don't see a lot of hope for a great spring market."

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