The Real Deal Miami

Home builder stocks overvalued by 10 to 15 percent, UBS analyst says

December 30, 2009 10:18AM

Although the most recent Standard & Poor’s data from the S&P/Case-Shiller Home Price Indices shows home prices starting to improve, there is still hesitation among investors about purchasing stock in home builder companies. “Home builder stocks are still about 10 to 15 percent overvalued,” David Goldberg, a UBS home builder analyst, said on MSNBC. If stocks drop, home prices appreciate more and unemployment numbers drop, Goldberg said, there will be more interest in purchasing home builder stocks. He recommended Toll Brothers as a good option for investing once its prices drop. “Toll has a great balance, market share gains, real liquidity restraints, and a very conservative market team,” Goldberg, said.