2026 was a bad year for us FTSE100 AND FTSE250 shares in housing construction. But Vistra Group (LSE:VTY) The share price performance has been nothing compact of disastrous. It is currently trading at 236.8p per share, down 63% since January 1.

In fact, an affordable housing specialist simply cannot rest. Today (Wednesday, July 8) it fell by another 7% after another shocking price update.

I do not own Vistra shares. But I really love buying high quality stocks and then they drop in price and I trade at rock bottom valuations. So I ask: is now the time to buy these old-fashioned FTSE 250 shares for my portfolio?

Profit warning

The breakable housing recovery in behind schedule 2025 and early 2026 has been truly upended. Home sales fell sharply, reflecting the adverse impact of the Iran war on mortgage rates.

However, Vistry was a particularly bad performer, shocking the market today with a profit warning. It currently estimates an adjusted pre-tax loss of £30 million for the six months to June. He had his market card checked in May when he predicted “much lower” gains from a profit of £80.6m in the same period in 2025. However, today’s result was much worse than feared.

Pre-tax profit for the full year is now £200m, up from May’s forecast of £223m.

So what went wrong? A positive is the boost in average weekly sales rates, which increased by 2% in the first half of the year. The problem is that Vistry has to cut prices to ease the burden on its properties. Private sales discounts increased to 7.1% from 1.4% last year.

The number of completed homes fell by 12% to approximately 6,100 homes. Meanwhile, the order book fell by 9% to £3.9 billion. And, disturbingly, Vistry warned about it

We do not expect any significant change in open market conditions in [the second half]or early 2027

Vistry: affordable as chips

Like many investors, I buy stocks with the long term in mind. So if Vistra stock looks good over the long term (e.g. five years), I’ll be tempted to buy it. Especially considering how affordable they are these days.

After today’s decline, FTSE 250 shares are trading on forward contracts price to earnings ratio (P/E) ratio only 7 times. This is less than half the 10-year average is around 15. Meanwhile, the price-to-book ratio (P/B) has fallen to 0.2, below the historical level of 1.

But that’s the point. I think profits for all housebuilders could boost significantly as the UK population grows, driving demand for modern homes. But I’m also concerned that Vistra’s focus on affordable housing – traditionally a more stable part of the market – isn’t sustainable. This suggests there may be deep-seated problems that may be tough for modern CEO Adam Daniels to fix.

I am also discouraged by the constant confusion among the company’s management. It was announced today that CFO Tim Lawlor will follow ancient CEO Greg Fitzgerald in October. This increases uncertainty about the future, not to mention the feeling that all is not well.

Is this buying FTSE 250 shares?

For more risk-tolerant investors, buying this old-fashioned FTSE 250 share could prove to be a masterstroke over time. But for me it poses too much risk. I prefer to find other affordable shares to buy with my ISA or SIPP.

Is it worth investing £5,000 in Vistry Group Plc now?

If investing expert Mark Rogers and his team have stock advice, it can pay to listen. After all, Twelfth’s flagship Magpie Share Advisor newsletter has been running for almost a decade, providing thousands of paying members with the best share recommendations from across the UK and US markets.

Mark believes there are 6 standout stocks that investors should consider buying right now. Want to check if Vistry Group Plc is on the list?

Royston Wild holds no position in the companies mentioned.