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Homebuilder stocks had a glorious run until the housing market peaked in the summer of 2005. Since then it's been nothing but pain from every direction.
Many of the big homebuilders saw their stocks rise fivefold or more in the five years up until summer 2005, when the housing market peaked. Since then four of the biggest five homebuilders have skidded 40 percent or more, with the exception of No. 1 Lennar, which has fallen "only" 34 percent.
The selloff has made some investors wonder if it's time to get back into the stocks. Some say that the top players in the industry will emerge stronger from the shake-out, but even some investors who are bullish long-term say it's too soon to buy back in.
"What's happening in the industry now makes a terrific opportunity to own these stocks," said Walter Stevenson of Stevenson Capital Management.
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