KB Home Sales Prices Rise
KB Home’s CEO Jeff Mezger told conference attendees Tuesday that the housing recovery is building strength in certain markets and that the home builder is in the “right markets today; it’s the right time.”
KB Home is targeting some of the strongest-performing markets in the country, including Arizona, California, Colorado, Florida, Washington, D.C., Nevada, New Mexico, North Carolina, and Texas.
Mezger told attendees at the builder’s 2013 analyst conference that the average sales price for the company surged 24 percent year-over-year in the first quarter.
Forty-nine percent of KB Home’s revenue in 2012 came from California alone, Mezger noted. That’s since ticked up to 51 percent in the first quarter of this year. The builder makes the most sales in Texas, however.
He noted that first-time home buyers are gaining strength in the market as well. Mezger says that 60 percent of its deliveries in the first quarter were to first-time buyers.
Mezger noted that the builder does not have any plans to expand to other states and that he feels confident they’re targeting the right markets in the recovery. KB Homes has spent more than $345 million in land and land development during the first quarter; it plans to spend more than $1 billion this year.