JEFF GUNDLACH: Short The Homebuilders

Gundlach said single-family housing is "over-believed and over-rated."

His trade is to short XHB Homebuilders ETF.

It's trading down about 1.3% today.

During his presentation, Gundlach highlighted a bunch of housing data points.

"We seem to be on the cusp of something of a change with existing home sales now negative," he said.

He pointed out that new home sales also falling.

He said that the bulls use affordability for their argument. However, Gundlach believes that affordability is "bleak."

Gundlach said that young people were scared by the housing crisis, so they're not buying homes. Instead, they're renting because that's much more appealing.

He doesn't see homeownership rates rebounding any time soon.