Support Disintegrates for Housing Stocks

Last week, we authored an article attributing the weekly decline in mortgage activity to the Super Bowl, and the tendency of Americans to celebrate the day like a holiday. We argued that, as with many three-day weekends, this would leave inadequate adjustment to business activity around the day. However, mortgage activity dropped again last week, for the period through February 17. Since the period fell between the Super Bowl and President’s Day, something more than anomaly is leading mortgage activity lower. This report, in fact, offers more evidence of the stall I’ve been warning about for housing, and so the hopeful support tenuously holding up the industry’s shares is now disintegrating rapidly.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Housing Stocks Follow Our Lead Lower

The Mortgage Bankers Association’s Market Composite Index fell 4.5% in the week ending February 17. This week, the main driver of the dip in mortgage activity was a drop in refinancing, with the Refinance Index down 4.8%. There was some creep higher in mortgage rates, but not across the spectrum of mortgage loan sizes and types. I also do not see the creep in rates as enough to stymie activity. The effective rates on jumbo and conforming 30-year mortgages both edged slightly higher, while effective rates for 15-year mortgages and 5/1 ARMS also inched upward. Only 30-year FHA sponsored loans saw effective rate decrease, but the change was also insignificant.

The previous week’s driver of decline was a notable decline in the Purchase Index, or loans tied to the acquisition of properties. We were looking for a like, though opposing rise this week, as the period matched against the Super Bowl inclusive week. Yet, the Purchase Index fell again, this time by 2.9% on a seasonally adjusted basis. Before adjustment, the Purchase Index did improve, but only by 1.4% against the prior week. The gain fell short of making up for the 7.6% decline the week before, so we have to take note. That’s because other data has continued to warn of a stall in housing, which we covered in detail in our recent study of the sector.

Indeed, the latest data reported today seems to confirm that concern. The four-week moving average of the MBA’s Market Composite Index, which would weed out anomalous factors, is down 0.3%. The moving average for the Purchase Index is off a greater 3.21%. The latest data, also reported Wednesday morning, showed Existing Home Sales running at a drag of an annual pace of 4.57 million in January. The rate was up from December, but only after December’s revision dramatically lower, to 4.38 million (from 4.61 million). January’s pace was also short of the consensus view of economists, which was set at 4.69 million according to Bloomberg.

Toll Brothers (NYSE: TOL) missed expectations this week, contributing to a second guessing of homebuilder shares finally. We suggested investors sell short homebuilder shares earlier this year, and have been questioning the strength of a housing recovery based on macroeconomic developments that should stall global economic growth.

The SPDR Series Trust Homebuilders ETF (NYSE: XHB) is off about a percentage point at the hour of scribbling here, and looks to be ready to follow the path I’ve laid out for it now. Individual homebuilders are giving back greater ground, especially those which are in the most precarious of positions. The shares of Hovnanian (NYSE: HOV) and Comstock (Nasdaq: CHCI), two companies I suggested would lead my list lower, are off 0.7% and 3.6%, respectively. K.B. Home (NYSE: KBH), PulteGroup (NYSE: PHM) and D.R. Horton (NYSE: DHI) are off between 1% and 4%. It seems that investors are now agreeing with my argument against the industry, and so support should disappear swiftly for these stocks near-term. I would continue to sell the industry’s shares as their nascent recovery is undermined by fundamental macro-driven drivers.

Article should interest investors in Savings & Loan stocks including Alaska Pacific Bankshares (OTC: AKPB.OB), Allied First Bancorp (OTC: AFBA.OB), Astoria Financial (NYSE: AF), AMB Financial (OTC: AMFC.OB), Ameriana Bancorp (NasdaqCM: ASBI), Anchor Bancorp Wisconsin (Nasdaq: ABCW), Bancorp of New Jersey (AMEX: BKJ), Bank Mutual (Nasdaq: BKMU), BankAtlantic (NYSE: BBX), BankFinancial (Nasdaq: BFIN), Banner (Nasdaq: BANR), BCSB Bancorp (Nasdaq: BCSB), Beacon Federal (Nasdaq: BFED), Berkshire Hills (Nasdaq: BHLB), Blackhawk Bancorp (OTC: BHWB.OB), Blue River Bancshares (OTC: BRBI.OB), Bofi (Nasdaq: BOFI), Broadway Financial (Nasdaq: BYFC), Brookline (Nasdaq: BRKL), Brooklyn Federal (Nasdaq: BFSB), Camco Financial (Nasdaq: CAFI), Capitol Federal (Nasdaq: CFFN), Carver (Nasdaq: CARV), Cecil Bancorp (OTC: CECB.OB), Center Financial (Nasdaq: CLFC), Central Federal (Nasdaq: CFBK), Chicopee (Nasdaq: CBNK), Citizens South (Nasdaq: CSBC), CKF Bancorp (OTC: CKFB.OB), Clarkston Financial (OTC: CKFC.OB), Clifton Savings (Nasdaq: CSBK), Close Brothers (OTC: CBGPY.PK), Columbia Banking (Nasdaq: COLB), Consumers (OTC: CBKM.OB), Dime Community (Nasdaq: DCOM), Enterprise (Nasdaq: EBTC), ESB Financial (Nasdaq: ESBF), ESSA Bancorp (Nasdaq: ESSA), Eureka Financial (OTC: EKFC.OB), FedFirst Fin’l (Nasdaq: FFCO), FFD Fin’l (Nasdaq: FFDF), FFW (OTC: FFWC.OB), First Bancorp of Indiana (OTC: FBPI.OB), First Bancshares (Nasdaq: FBSI), First Capital (Nasdaq: FCAP), First Clover Leaf (Nasdaq: FCLF), First Defiance (Nasdaq: FDEF), First Federal Bancshares of Arkansas (Nasdaq: FFBH), First Financial Holdings (Nasdaq: FFCH), First Independence (OTC: FFSL.OB), First Investors Fin’l Services (OTC: FIFS.PK), First Niagara (Nasdaq: FNFG), First Robinson (OTC: FRFC.OB), First Security Group (Nasdaq: FSGID), First South (Nasdaq: FSBK), Flagstar (NYSE: FBC), Flatbush Federal (OTC: FLTB.OB), Flushing Financial (Nasdaq: FFIC), Greene County (Nasdaq: GCBC), HF Financial (Nasdaq: HFFC), HMN Fin’l (Nasdaq: HMNF), Home Bancorp (Nasdaq: HBCP), Home Federal (Nasdaq: HOME), HopFed (Nasdaq: HFBC), Hudson City (Nasdaq: HCBK), Indiana Community (Nasdaq: INCB), Investors Bancorp (Nasdaq: ISBC), Jacksonville Bancorp (Nasdaq: JXSB), Jefferson Bancshares (Nasdaq: JFBI), Kaiser Federal (Nasdaq: KFFG), Kearny Fin’l (Nasdaq: KRNY), Kentucky First Federal (Nasdaq: KFFB), Lake Shore Bancorp (Nasdaq: LSBK), Louisiana Bancorp (Nasdaq: LABC), LSB Fin’l (Nasdaq: LSBI), Malvern Federal (Nasdaq: MLVF), Meridian Interstate (Nasdaq: EBSB), Meta Fin’l (Nasdaq: CASH), NASB Fin’l (Nasdaq: NASB), Naugatuck Valley (Nasdaq: NVSL), New England Bancshares (Nasdaq: NEBS), New Hampshire Thrift (Nasdaq: NHTB), New York Community (NYSE: NYB), North Central Bancshares (Nasdaq: FFFD), Northeast Community (Nasdaq: NECB), Northwest Bancshares (Nasdaq: NWBI), OceanFirst (Nasdaq: OCFC), Ocwen (NYSE: OCN), Oneida (Nasdaq: ONFC), Park Bancorp (Nasdaq: PFED), Parkvale Fin’l (Nasdaq: PVSA), Pathfinder Bancorp (Nasdaq: PBHC), People’s United (Nasdaq: PBCT), Provident Community (Nasdaq: PCBS), Provident Fin’l (Nasdaq: PROV), Provident Fin’l Services (NYSE: PFS), Provident New York (Nasdaq: PBNY), Prudential Bancorp of PA (Nasdaq: PBIP), PSB Holding (Nasdaq: PSBH), Pulaski Fin’l (Nasdaq: PULB), PVF Capital (Nasdaq: PVFC), QC Holding (Nasdaq: QCCO), River Valley Bancorp (Nasdaq: RIVR), Riverview Bancorp (Nasdaq: RVSB), Roma Fin’l (Nasdaq: ROMA), Salisbury Bancorp (AMEX: SAL), SI Financial (Nasdaq: SIFI), Southern Missouri (Nasdaq: SMBC), Sterling Fin’l (Nasdaq: STSA), Teche Holding (AMEX: TSH), TF Fin’l (Nasdaq: THRD), Timberland Bancorp (Nasdaq: TSBK), United Community (Nasdaq: UCBA), United Community Fin’l (Nasdaq: UCFC), United Fin’l Bancorp (Nasdaq: UBNK), Valley Fin’l (Nasdaq: VYFC), Washington Federal (Nasdaq: WFSL), Waterstone Fin’l (Nasdaq: WSBF), Wayne Savings (Nasdaq: WAYN), WSB Holdings (Nasdaq: WSB) and WVS Financial (Nasdaq: WVFC).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Renter Nation

Housing hounds will likely snarl at my take of the latest Housing Starts data, but the truth must be told. While housing starts gained ground in January, that ground was overwhelmingly taken through the construction of multi-family projects upon it. If the investment community thinks a renter nation is a healthy nation, well then it has been misled.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relative Tickers: NYSE: ACC, Nasdaq: AGNC, NYSE: AIV, Nasdaq: AMTG, NYSE: ARR, NYSE: AEC, NYSE: AVB, NYSE: BRE, NYSE: CPT, NYSE: CCG, NYSE: CLP, NYSE: CYS, NYSE: EDR, NYSE: ELS, NYSE: EQR, NYSE: ESS, NYSE: HTS, NYSE: HME, OTC: MRTI.PK, NYSE: MAA, Nasdaq: NYMT, NYSE: PMT, NYSE: PPS, NYSE: SNH, NYSE: SUI, NYSE: TWO and NYSE: UDR.

A Renter Nation

Housing Starts, reported Thursday for the month of January, gained by 1.5% over December and ranked 9.9% above January 2011. However, single-family housing starts, which are typically seen as the key measure of housing health, actually fell 1.0% against December. The growth highlighted by the headlines was all found in multi-family units of 5 or more, where construction increased by 14.4%. A shift towards a renter nation is not indicative of a healthy atmosphere by most means. There’s just one driver we view healthy for multi-family growth, and that’s driven by demographics. Our aging nation is aiding the growth of the senior housing industry, as seen in the long-term chart of the Senior Housing Properties Trust (NYSE: SNH).

Still, we suggest that it is precisely the shift in the economic situation of a great many Americans and the shift in the lending environment, which has severely damaged the prospects of home ownership in America. Some of that change is of course for good reason, with no more liar loans issued and “no credit, no problem” guarantees made any longer. Higher scrutiny and regulation of the industry was of course a necessity after the alleged negligence (by several Congressmen at minimum) of the rating agencies. Standard & Poor’s (NYSE: MHP) and Moody’s (NYSE: MCO) regularly rated mortgage backed securities investment grade, due to the diversification provided by investment pools. Unfortunately, they missed the possibility of broad real estate value decline across the nation and also did not account for the bubble blowing, greed driven business that was happening at some financial institutions in the qualification of borrowers.

Bill Clinton’s revival of the American dream of home ownership has hit a serious snag today. Indeed, home ownership is on the decline after peaking in 2004 at 69.2%. It’s been falling over recent years, due to the financial crisis & resultant foreclosures, economic recession & resultant unemployment and the changed financing environment around real estate. In the fourth quarter of 2011, home ownership was measured at 66.0%, and that was down from Q3’s 66.3%.

Given the latest trend reported in the Housing Starts data over recent months, it appears home ownership will deteriorate further. While the popular press was touting it, and the stock market was celebrating Housing Start growth of 1.5% in January, we were pointing out the 1.0% decline in single-family property starts. While single-family activity is up 16.2% against the low bar set in January of 2011, single-family construction permits are up only 6.2% against the prior year. On the contrary, permits filed for multi-family units are up 61% against the prior year period. Take heed my fellow citizens, because the American dream is at stake.

In the zero sum game where many are suffering, some are getting richer. While the shares of residential real estate REITs had their issues through the crisis, and have traded choppy over the last six months, the last year’s trading has most of the largest players clear in the green. Market Cap leaders Equity Residential (NYSE: EQR) (+11.6%), AvalonBay Communities (NYSE: AVB) (+18.3%), American Capital Agency (Nasdaq: AGNC) (+24%), UDR, Inc. (NYSE: UDR) (+10.9%) and Essex Property Trust (NYSE: ESS) (+27%) are all sharply higher over the trailing twelve month period, adjusted for dividends and splits. The same goes for homebuilders over recent months, though we take issue there. The apartment managers should continue to benefit from America’s shift towards a renter nation. Though, given the ongoing economic issues plaguing our country, we wonder how many of those new renters are up-to-date on their rent. That said, net-net, gains still favors rental property managers.

This article should interest investors in residential REITs like American Campus Communities (NYSE: ACC), American Capital Agency (Nasdaq: AGNC), Apartment Investment and Management (NYSE: AIV), Apollo Residential Mortgage (Nasdaq: AMTG), ARMOUR Residential REIT (NYSE: ARR), Associated Estates Realty (NYSE: AEC), AvalonBay Communities (NYSE: AVB), BRE Properties (NYSE: BRE), Camden Property Trust (NYSE: CPT), Campus Crest Communities (NYSE: CCG), Colonial Properties Trust (NYSE: CLP), CYS Investments (NYSE: CYS), Education Realty Trust (NYSE: EDR), Equity LifeStyle Properties (NYSE: ELS), Equity Residential (NYSE: EQR), Essex Property Trust (NYSE: ESS), Hatteras Financial (NYSE: HTS), Home Properties (NYSE: HME), Maxus Realty Trust (OTC: MRTI.PK), Mid-America Apartment Communities (NYSE: MAA), New York Mortgage Trust (Nasdaq: NYMT), PennyMac Mortgage Investment Trust (NYSE: PMT), Post Properties (NYSE: PPS), Senior Housing Properties Trust (NYSE: SNH), Sun Communities (NYSE: SUI), Two Harbors Investment (NYSE: TWO) and UDR (NYSE: UDR).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Homebuilder Shares and Housing Review

The general view of housing is decidedly positive heading into the 2012 spring selling season… as usual. It is positive compared to other recent spring selling seasons as well, but not by much, given the generally speculative hoping that occurs among industry participants around this time of year. The mood among homebuilders is also improved, though notably depressed still on an absolute basis. That is because the industry metric measures the small, under-capitalized, poorly performing construction outfits alongside the large, well-capitalized, publicly traded industry leaders. Still, many publicly traded, large builders like D.R. Horton (NYSE: DHI) and K.B. Home (NYSE: KBH) have been posting increases in orders of varying degrees over a low set bar, though cancellations persist. These factors, helped by capital flow drivers (tax driven mostly), have many stock market players quite frenzied, with homebuilders’ shares among market leaders. The SPDR Series Trust Homebuilders ETF (NYSE: XHB) is up roughly 62% since the industry trough on October 3, 2011, adjusted for dividends and splits. The ETF is up roughly 18% year-to-date, separating itself clearly from the approximate 7.4% increase in the S&P 500 Index. My review here is to take stock of what has given the industry lift to date, and to survey its footing for the months ahead.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relative tickers: Nasdaq: ITIC, NYSE: BAC, OTC: FMCC.OB, OTC: FNMA.OB, NYSE: GS, NYSE: MS, NYSE: WFC, NYSE: TD, NYSE: SRS, NYSE: URE, NYSE: IGR, NYSE: XIN, Nasdaq: RYHRX, Nasdaq: TRREX, NYSE: TOL, NYSE: HOV, NYSE: DHI, NYSE: BZH, NYSE: LEN, NYSE: KBH, NYSE: PHM, NYSE: NVR, NYSE: GFA, NYSE: MDC, NYSE: RYL, NYSE: MTH, NYSE: BHS, NYSE: SPF, NYSE: MHO, AMEX: OHB, NYSE: VNQ, NYSE: PNC, NYSE: JPM, Nasdaq: HOFT, NYSE: ETH, NYSE: PIR, NYSE: WSM, NYSE: HD, NYSE: LOW, AMEX: VAZ, AMEX: NKR, AMEX: MZA, AMEX: NXE, AMEX: NFZ, Nasdaq: XNFZX, Nasdaq: FSAZX, Nasdaq: AVTR, NYSE: AIV, NYSE: EQR, NYSE: AVB, NYSE: UDR, NYSE: ESS, NYSE: CPT, NYSE: SNH, NYSE: BRE, NYSE: HME, NYSE: MAA, NYSE: ELS, NYSE: ACC, NYSE: CLP, Nasdaq: AGNC, NYSE: SUI, NYSE: AEC, NYSE: PMT and AMEX: TWO, NYSE: SPG.

Housing Review

New aggregate industry data has been reaching the wire this week, and it seems to conquer in its message with that of recent weeks. The argument the data makes is clear, and definitely contrary to the performance of homebuilder shares (if you read beyond the headlines), which I argue have benefited as much from unsustainable capital flow drivers as from fundamental improvement in the housing industry. Furthermore, the macroeconomic outlook remains grim and the trend seems to show deterioration. So, I once again argue that sooner or later, at least a portion of homebuilder valuations built largely upon capital flow logic and prospective hope is likely to give way before propelling much further on momentum. I see speculative interests which may view themselves as wise contrarians at risk by result. But this logic extends beyond just homebuilders, to all cyclically sensitive shares that have moved in kind.

Data Review

Homebuilder confidence was touted Wednesday as yet another rally cry for the industry’s shares. The National Association of Home Builders (NAHB) reported the fifth consecutive month of improvement in its Housing Market Index. But while the HMI was climbing to a mark of 29, from 25 in January, it was still sitting deeply under the mark that delineates positive outlook from negative. In fact, while the HMI may be off suicide watch, it remains in a sad, sad state.

Looking at Wednesday’s weekly mortgage application data, I found nothing worth celebrating. The Mortgage Bankers Association’s Market Composite Index only fell by 1.0% in the week ending February 10, 2012 when compared against the preceding week. Refinance activity was up 0.8% for that relative period, but the mortgage applications tied to the purchase of a home fell 8.4%. Believe it or not, though, the weekly decline was probably the result of the Super Bowl, which fell on February 5. More importantly, the Purchase Index was 7.6% short of the mark it set during the same week last year. That comparison is clearly inconsistent with the profits accumulating in the shares of homebuilders in aggregate.

Housing Starts, reported Thursday for the month of January, gained by 1.5% over December and ranked 9.9% above January 2011. Even here, yours truly found reason to argue. You see, single-family housing starts actually fell 1.0% against December. The growth was found in multi-family units of 5 or more, where construction increased by 14.4%. A shift towards a renter nation is not indicative of a healthy atmosphere, though demographics are aiding the growth of the senior housing industry, as seen in the long-term chart of the Senior Housing Properties Trust (NYSE: SNH).

Looking back two weeks at the latest home price data, the Standard & Poor’s Case Shiller Home Price Index showed acceleration of home price decline in November. The data was downright depressing, with 19 of 20 cities experiencing a second consecutive month of price contraction. However, many builders like Lennar (NYSE: LEN) are showing sales price increases alongside volume gains, thanks to differentiation and buyer focus between the lean new home and flooded existing home markets. This is a second fundamental point which is positive for publicly traded builders, and I will not overlook it. It is certainly one tangible reason why homebuilders have attracted capital to date. However, I do not believe it will guard the high beta shares from macroeconomic driven slippage and geopolitical trigger. Perhaps these fundamental factors will contribute to an industry wide beta contraction though, as the industry has strengthened through trial.

A Fundamental Case Exists

Another bit of good news for homebuilders is that their own version of austerity has shaved their inventory and that of the home market, in terms of months to sell through. Furthermore, Realtytrac sees the foreclosure cycle peaked, so the flow of low-priced comparables into the pool of available properties is easing. Still, the industry resource says banks continue to work through their own stock of “delayed foreclosures.” Also, new foreclosures continue to flow only less heavily into the market, given the still difficult labor situation and strained savings of the long-term unemployed.

Better capitalized, large, publicly traded builders are also benefiting from market share gains helped along by the demise of a good number of smaller builders that found themselves over-levered with nowhere to sell at the bust of the bubble. These changes to the composition of the new home construction pie are likely contributing to the the order growth and other gains reported by the likes of Beazer Homes (NYSE: BZH), Toll Brothers (NYSE: TOL) and others. This is a fundamental reason to like home builders over the long run.

Another contributor to growth for the public builders is the low base which today’s activity is rising from. That fact comes through in the cautionary commentary of the executives within the reports referred to herein. The prospect for industry revival through its contraction and given the signs of survival in many of the healthier builders has the most prospective of the bunch gaining more ground, like that seen at Hovnanian (NYSE: HOV) and Comstock (Nasdaq: CHCI). These are the first places I would look to lessen risk, if not outright position short.

In Conclusion

Industry structural change factor aside, I believe these stocks (and other cyclically sensitive sectors like retail stores – which I recently suggested investors short) are going to need ongoing support from the economy to keep capital support. I just see that failing them given signs of new U.S. economic sluggishness, stubborn unemployment on labor market structure issues, European recession and an Iran event likelihood that can no longer be dismissed. The vulnerability of the U.S. economy to costly energy (rising gasoline prices), disruptive geopolitical disorder and significant export softness, given still too high under-employment and too low consumer confidence and business investment leaves cyclical industries in tenuous state.

The chart of the XHB says to me that the latest run up for homebuilders is at a point of reassessment. While the individual corporate reports of the healthiest publicly traded companies should continue to offer general support, many names will disappoint high hopes. Furthermore, the operational results bar has been raised now for these stocks, which increases the likelihood of their falling short of expectations. Given the aforementioned macro weights, cyclical shares should give way. Highest on the hill among those are the recently raised homebuilder stocks, and so I reiterate my call to sell the shares despite the evident driver of structural industry improvement.

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Editor's Note: Article should interest investors in Investors Title (Nasdaq: ITIC), Bank of America (NYSE: BAC), Freddie Mac (OTC: FMCC.OB), Fannie Mae (OTC: FNMA.OB), Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), Wells Fargo (NYSE: WFC), Toronto Dominion (NYSE: TD), UltraShort Real Estate ProShares (NYSE: SRS), Ultra Real Estate ProShares (NYSE: URE), ING Clarion Global Real Estate Income Fund (NYSE: IGR), Xinyuan Real Estate Co. (NYSE: XIN), Rydex Real Estate Fund H (Nasdaq: RYHRX), T. Rowe Price Real Estate Fund (Nasdaq: TRREX), Toll Brothers (NYSE: TOL), Hovnanian (NYSE: HOV), D.R. Horton (NYSE: DHI), Beazer Homes (NYSE: BZH), Lennar (NYSE: LEN), K.B. Homes (NYSE: KBH), Pulte Homes (NYSE: PHM), NVR Inc. (NYSE: NVR), Gafisa SA (NYSE: GFA), MDC Holdings (NYSE: MDC), Ryland Group (NYSE: RYL), Meritage Homes (NYSE: MTH), Brookfield Homes (NYSE: BHS), Standard Pacific (NYSE: SPF), M/I Homes (NYSE: MHO), Orleans Homebuilders (AMEX: OHB), Vanguard REIT Index ETF (NYSE: VNQ), PNC Bank (NYSE: PNC), J.P. Morgan Chase (NYSE: JPM), Hooker Furniture (Nasdaq: HOFT), Ethan Allen (NYSE: ETH), Pier 1 Imports (NYSE: PIR), Williams Sonoma (NYSE: WSM), Home Depot (NYSE: HD), Lowes (NYSE: LOW), Nasdaq: XNFZX, Nasdaq: FSAZX, Avatar Holdings (Nasdaq: AVTR), Apartment Investment & Management (NYSE: AIV), Equity Residential (NYSE: EQR), Avalonbay Communities (NYSE: AVB), UDR Inc. (NYSE: UDR), Essex Property Trust (NYSE: ESS), Camden Property Trust (NYSE: CPT), Senior Housing Properties (NYSE: SNH), BRE Properties (NYSE: BRE), Home Properties (NYSE: HME), Mid-America Apartment (NYSE: MAA), Equity Lifestyle Properties (NYSE: ELS), American Campus Communities (NYSE: ACC), Colonial Properties (NYSE: CLP), American Capital Agency (Nasdaq: AGNC), Sun Communities (NYSE: SUI), Associated Estates (NYSE: AEC), PennyMac Mortgage (NYSE: PMT), Two Harbors (AMEX: TWO), Simon Property Group (NYSE: SPG).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.