by Calculated Risk on 12/07/2006 09:26:00 PM

In a research note titled: "Not So Fast", Credit Suisse' Zelman, et al, offered their top ten reason to downgrade the homebuilding sector.

Some of the reasons were technical or based on valuations, but mostly it was more supply and less demand.

I'm surprised at the percentage of respondents that are expecting to expand next year - I expect 2007 will be worse in every way for the homebuilders than 2006; fewer sales, fewer starts, less employment, lower prices, smaller margins, more homebuilders going under, etc..