Homebuilders don't look too bad to me. New home inventories aren't extraordinarily high. What is troublesome is that existing home inventories are high and continue to rise, and... consumer sentiment is very low. However, I don't think that new homes have a big problem attracting new buyers. Given a choice between a new home and a used home for similiar prices and similar location, I think that the new home will get sold first. Homebuilders of course will have lower earnings due to rising materials cost and lower sales dollar volume, but I think that the market is too aggressive in its discounting of these fundamentals. Homes are not being sold now because they are not priced correctly. Sellers still refusing to price it where it should be. I think that homebuilders will continue to discount prices of new homes while sellers of existing homes will try to be stubborn. New entrylevel homes will do ok while existing home inventories will grow.