Dueling Fools: Homebuilders

Are folks buying homes anymore? Of course they are. The market has cooled off considerably as of late, but people are still heading to our online Home Center to learn about homebuying tips and get the skinny on the latest mortgage rates.

I can't blame you for thinking otherwise, given all the scary headlines. Former high-flying real estate developers like Levitt (NYSE: LEV ) , WCI Communities (NYSE: WCI ) , Dominion Homes (Nasdaq: DHOM ) , and Orleans Homebuilders (AMEX: OHB ) are all trading in the single digits.

Sentiment is sinking, order cancellations are rising, and even existing homes are hanging around for way too long on the market.

Is this a dinner bell for contrarians, or is that bell simply a call to "bring out your dead"? Not all Fools agree. Anders Bylund is our bull this week, arguing that we've outlived other booms that went bust. I'm the bear, fearing that things will get even worse before they get better.

Which Fool is right? That's what this week's bout is all about.

Duel on!

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