After posting yesterday’s look at the Dow Jones Home Construction Index, I decided to take a look at the index’s 14 components. Here’s how each component performed in 2007:
Of course I’m not telling you anything that you didn’t already know. We all knew it was bad, I just didn’t know it was that bad. Standard Pacific was down nearly 90%! That’s amazing. Of course this could be the year that things turn around. As you can see from this graphic, almost all of the home builders are up so far this year:
However, with 2 years worth of homes in inventory (that’s a number that has been thrown around a lot lately) and a mass of foreclosures on the way, I wouldn’t expect a turnaround any time soon.