The tunnel is very long and dark. Homes prices are coming down, but who needs a homebuilder, when there are plenty of great foreclosed homes on the market?
Here's the problems for Homebuilders:
1. Lending is so tight they make you squeeze lemons for lemonade, and you cant use your hands.
2. As you say, why would anyone buy a new home when there are so many foreclosure properties available at very reduced prices.
PHM will need to morph their business from being a run-of-the-mill cookie-cutter shop to being a "Custom Home Builder" in order to survive as a company. This perhaps extremely limits their market, but they might survive.
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