Goldman Sachs downgrades Home Builder Sector Jul 14th 2010
Goldman Sachs Slashes Ratings Across Entire Homebuilder's Industry Everybody has been wondering what was going to happen to homebuilders once the Federal government's tax credit expired at the end of April. Well, we're starting to find out, and the picture doesn't look good. Goldman Sachs has downgraded the entire Homebuilders industry from Attractive to Neutral, dropped MDC Holdings Inc. (MDC) from its Conviction Buy List and dropped its price targets on 10 stocks in the industry. And really, who can blame them? We've seen new home sales plunge from 504K in April -- right before the tax credit expired -- to 300K in May. We've also watched housing starts and applications for new building permits dry up. Plus, it is getting harder and harder for individuals to qualify for a loan. All of this spells trouble for homebuilders. Let's take a look at the carnage from today's Goldman Sachs downgrades. DR Horton (DHI) is still a Buy but saw its price target dow