Homebuilders up.

Since the subprime and housing meltdown began in early 2007, homebuilders have been pummeled on Wall Street. Ryland Group Inc. and KB Home have been no exception.

Now, however, at least some investors believe the real estate market may have hit bottom, boosting the local companies' stock. Shares of Calabasas-based Ryland have risen 16 percent since August 5, closing at $22.70 Sept. 4. Shares of Los Angeles-based KB were up 18 percent over the same period, closing Sept. 4 at $20.11.

Despite the continued decline of home prices, several analysts and economists have suggested that the bottom of the market could be near. which is apparently all investors needed to hear.

Deutsche Bank Securities Inc. analyst Nishu Sood wrote in a report that Ryland's use of a "build-to-order" strategy for homes has allowed it to keep pricing in line with the market. "Ryland's balance sheet more accurately represents market conditions than peers', so we maintain our buy (rating)," wrote Sood in July, before the run-up started.

According to a Bloomberg News poll of analysts that cover Ryland, six rate it a buy, six a hold and one a sell. As for KB, two rate it a buy, 10 a hold and one a sell.

Staff reporter Daniel Miller can be reached at [e-mail] or [phone], ext. 263.