This Washington Post article is one of many signs I’ve noticed lately that the housing bubble is beginning to burst (as it previously did in Australia and England), as I predicted back in March. Inventories are growing in other metro areas, banks have run out of creative financing options (once you’ve allowed negative equity, no money down loans, where is there to go?), interest rates are rising, new home prices (a more consistent indicator than existing home prices) are down nationwide, insiders at big homebuilding companies like Toll Brothers and KB Homes are selling like mad…
With home builder stocks at record highs, investors with some speculative money to throw around should be buying January 2007 Puts on these stocks.
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