So.Cal wildfires lift homebuilding stocks?

[Kramer_Hedge_LA]

Anyone think that these wild fires will cause a rally in the homebuilders because of all the new homes that will have to be rebuilt??

 

[sunggong]

Quote from Kramer_Hedge_LA:

Anyone think that these wild fires will cause a rally in the homebuilders because of all the new homes that will have to be rebuilt??

That was my thought last night when I first heard the news.

I made money from trading homebuilder stocks today, but I can't say that I'm very happy.

It's a tragic situation there.

 

[dividend]

Can they still use 'undocumented' workers to build houses? I wonder how much the true cost of building a house is, using real labor.

 

[1flyfisher]

The answer to your question is No

Quote from Kramer_Hedge_LA:

Anyone think that these wild fires will cause a rally in the homebuilders because of all the new homes that will have to be rebuilt??

 

[nazzdack]

People will leave the area, not return to it. Rebuilding won't happen.

 

[a529612]

It just burns down the excess inventory.

 

[scriabinop23]

Quote from nazzdack:

People will leave the area, not return to it. Rebuilding won't happen.

Ummm. San Diego.. or Detroit.

 

[nazzdack]

Detroiters are stuck. Nobody is moving in to buy. Unless you have a repeat of the 1960's riots where neighborhoods were burned down and people had to leave, it's stagnant. Insured San Diegans can cash out and join the exodus of people moving to the neighboring states.