The New Year has started out with a great report on the future for the housing market this year. Still rebounding from the housing crisis, there was a slow moment in 2018 for the market. KB Home and Lennar have reported that shares are up this week. Investors and builders have been given an incentive after hearing the good news.
Last week, Lennar’s net income went above and beyond expectation and shares rose up 10%. This makes Lennar’s shares up more than 11% week to date. Their strategy has been affordability in home prices and with the 30-year fixed-rate mortgage around 4.78%, affordable home pricing is the key.
KB Home reports their average selling price at the end of 2018 was down 5% from the previous end of 2017.
Lennar CEO Richard Beckwitt describes current sales as, “increased traffic, increased qualified traffic, increased folks willing to buy.”
KB Home CEO Jeffrey Mezger said, “The economy is expanding. Consumer confidence is high. Employment is strong, wages are growing, and household formation is increasing. Alongside these positive factors, the supply of existing homes remains low at 3.9 months nationally, and below that level in many of our markets, and single-family housing starts for 2018 will once again be well under the long-term annual average.”
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