When Will the Homebuilders Turn Around?

By the end of last year, the rebound in real estate prices and the explosive rallies in many of the homebuilding stocks had convinced the majority that this important part of the economy had turned the corner.

excerpt from: http://www.forbes.com/sites/tomaspray/2013/08/10/when-will-the-homebuilders-turn-around/?utm_source=allactivity&utm_medium=rss&utm_campaign=20130811

The problem with homebuilders is that the first time home buyers are not able to get mortgages. Their bread and butter has been the starter homes. There is a turnaround going on but it is tempered by the limited market. The American dream is changing because of the reality of the situation. Instead of being the owner of a nice house it is now to rent a nice house (from me).

Locally I am told the only reason new homes are selling is that the builder takes $1.00 down and covers the closing, etc.

Not a real recovery.