Some Home Builders Remain 'Buys' Despite Housing Depression

The National Association of Home Builders characterized this as good weather pulling forward some projects to February from March. It appears that builders want to rebuild inventories, which fell to a new record low of just 144,000 homes nationwide, but the deterrent remains tight credit from community banks with regard to Construction and Development loans.

S&P / Case-Shiller Shows Home Prices Still Declining

The 20-City Composite declined 0.8% in February sequentially and was down 3.5% year over year to 134.20. The Index is thus 34.2% above its inception level of 100 in January 2000.

To decline to 100 home prices would have to fall another 25.5%. From the June / July bubble peak home prices hit a new low, down 35%.

Here are ValuEngine's BUY-Rated Home Builders

• DR Horton (DHI) has a one-year price target at $16.51. Investors should consider adding to positions on weakness to by annual pivot at $14.45 and booking some profits on strength to my weekly risky level at $16.17.
• Lennar Group (LEN) has a one-year price target at $28.27. Investors should consider adding to positions on weakness to by monthly value level at $22.77 and booking some profits on strength to my weekly risky level at $29.16.
• Standard & Pacific (SPF) has a one-year price target at $4.81. Investors should consider adding to positions on weakness to by monthly value level at $4.11 and booking some profits on strength to my weekly risky level at $4.58, which was tested this morning.
• Toll Brothers (TOL) has a one-year price target at $25.51. Investors should consider adding to positions on weakness to by monthly value level at $20.72 and booking some profits on strength to my weekly risky level at $24.66.

Pulte Group(PHM) has been downgraded to HOLD from BUY according to ValuEngine this morning and the stock has tested my weekly pivot at $8.85, an ideal level at which to book profits.