84% Off on KB
KB Home , the No. 5 U.S. home builder, said on Thursday net profit fell 84%. Revenue fell 19% primarily because of lower housing revenue which fell 20%.
The lower house revenue reflected a 5% lower average selling price to $261,400 and 16% fewer closings. Net orders for new homes fell 12% while the cancellation rate was 31%.
KB warned that higher foreclosures and tighter lending standards in the broader market could prolong weakness in the sector.
KB CEO Jeffrey Mezger: "the rise in delinquency and foreclosure rates may increase the supply of homes on the market, generating additional downward pressure on prices...
under these conditions, it is hard to predict when the housing markets will stabilize."
But I thought the Fed said housing showed signs of stabilization and that adjustments were ongoing??? What does the CEO of KB know anyway??
The lower house revenue reflected a 5% lower average selling price to $261,400 and 16% fewer closings. Net orders for new homes fell 12% while the cancellation rate was 31%.
KB warned that higher foreclosures and tighter lending standards in the broader market could prolong weakness in the sector.
KB CEO Jeffrey Mezger: "the rise in delinquency and foreclosure rates may increase the supply of homes on the market, generating additional downward pressure on prices...
under these conditions, it is hard to predict when the housing markets will stabilize."
But I thought the Fed said housing showed signs of stabilization and that adjustments were ongoing??? What does the CEO of KB know anyway??
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