Normally, Housing Panic bashes Lawrence Yun quite well. Unfortunately, the chief cheerleader* recently made this dumbass statement, “although there could be some minor slippage in the first quarter, existing-home sales should hold in a narrow range before trending up,” which is so blatantly retarded that I have to weigh in and call bullshit. Sorry, Mr. Yun, but housing is going down like a University of Georgia sorority girl.

This morning, KB Home (KBH) reported a loss of almost $10 a share. For the fourth quarter. The stock promptly fell 9.2 percent. For perspective, KBH earned $5.82 per share in 2006. There is essentially no difference between new and existing homes, so when new home sales go in the shitter, existing home sales do too.

It gets better - fourth quarter revenue at KBH fell almost one billion dollars**. New home deliveries dropped 22 percent. Continuing the gravity theme, average selling price fell from $280,000 to $247,800, or 11.5 percent. By the way, just in case anyone thought real estate was local, KBH saw a nationwide decline in orders.

Stable, my ass. This is a horrible time to buy and Mr. Yun damn well knows it.

In other news, I wish I had not sold my KBH Jan 30 puts back in November for what seemed like an absurd profit of 240 percent. Had I kept them, I would be watching big titted lesbians have relations in high definition on a sweet new 50″ plasma right now instead of typing this for 3 readers.

notes

* Lawrence Yun’s official title is economist, but my toilet knows more about economics than he does, so I can’t in good conscience call him one.
** All figures are year over year.