...September 10, 2024 What's new: KB Home achieved a significant sequential improvement in construction times, resulting in starts being close to historical build times between four and five months, with a focus on further improvement to drive construction times closer to four months. Some of this is captured in KBH's sales pace as its monthly absorption pace of 5.5 net orders per community was above its average second quarter level of the past decade. This is notable given the volatility in interest rates during the quarter, with the 30-year mortgage rate moving above 7% and the fact that KBH raised prices modestly in most of its communities, helping to offset the cost of mortgage incentives. Why it matters: Delivering a personalized home in a shorter time frame should make built-to- order homes even more appealing to buyers as the gap between a 60-day speculative home and a 4.5-month personalized built-to-order home narrows. KBH is seeing the benefit of this, with built-to-order homes representing...
