Home builders see reasons for optimism

Barb Jandric, the head of Minnesota's biggest real estate broker, hasn't seen the Minneapolis market boost sales without government aid in six years -- until a narrow gain in 2011. Ryland Chief Executive Larry Nicholson hasn't seen a yearly profit since before the recession, but the home builder expects one this year, buoyed by a 31% increase in homes on order at year's end. Enthusiasm about a housing rebound may be getting out of hand on Wall Street, where stock prices for home builders have jumped 20% to 134% since August even though housing starts are expected to rise just 15% to 20% this year. But as Federal Reserve Chairman Ben Bernanke prepares for a major speech on housing Friday, talk is turning from when housing will hit bottom to whether it's time to buy housing stocks and count on the sector to propel the economy again.

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