KB Home Stock Hammered

KB Home Stock Hammered

KB Home suffered its worst one-day percentage drop since Aug. 19, 1992 on Tuesday with a 16.3% decline. With lower than expected margins in the 4th quarter of 2014 and guidance that margins are likely to continue to be soft into early 2015, investors punished KB’s stock price. Some analysts are predicting widespread margin compression in the homebuilding sector due to slowing price appreciation, building on high basis land and rising labor and materials costs.

Read More

Previous Obama Cuts Mortgage Insurance Rates
Next Return of the First-Time Homebuyer?

About author

Michael Anderson
Michael Anderson 249 posts

Over the course of his 30-year career, Michael Anderson has worked in the residential development industry in the Pacific Northwest, Northern California and Southern California. He has acquired residential land in excess of $300M for both land development and homebuilding entities and has overseen the construction of approximately 2500 homes. Currently, in semi-retirement, and based out of Newport Beach, CA, Michael continues to invest in and stay abreast of the land markets.

View all posts by this author →

You might also like

Homebuilders / Land Developers

Land Takes Primacy in Homebuilder M&A

While the majority of M&A targets are valued based on a projected stream of future cashflows, in homebuilder M&A, asset value – that is, land value – takes center stage.

Homebuilders / Land Developers

Homebuilder Confidence Up

The NAHB Homebuilder Confidence Index moved up to 58 in November from 54 in October which marks the second-highest figure since the peak of the market in 2005. Builders nationally

Homebuilders / Land Developers

The New Home Company Profile

Orange County-based builder, The New Home Company, is profiled in this article in the Los Angeles Times. The company, founded by industry veterans Larry Webb, Wayne Stelmar, Tom Redwitz and