Toll Brothers is about to release earnings. Ponder this Bear Case Scenario:
Real Estate development is interest rate sensitive and subject to mortgage availability. These two factors are not aces up your sleeve.
Housing sales are still a struggle. Consumers prefer to rent. Nothing is stimulating demand. Drops in unemployment are not translating into housing sales.
The best locations have already been bought and they are not making anymore. Suburban tract development may not be the way of the future.
George Gutowski writes from a caveat emptor perspective.