KB Home Cancellations SKYROCKET! 68% of Contracts CANCELLED
KB Home reported net profits for the year and are paying a dividend as well in the 1st quarter of 2023. While profits are not as high as they would like, there is no risk of KB Home going into bankruptcy. These homes that are under construction will still be built and then sold to buyers as interest rates drop through the spring and the number of homes in the resale market also drops.
Youtubers have reported this as terrible news, as well as the housing crashers, but that is fiction and this isn’t substantially high compared to the total number of homes they have for sale. This equates to an average of 40 houses in each market and that’s literally not going to affect any market, even if they were homes ready to be sold today.
KB Home cancellations were expected given the fast rise interest rates and this is in line with what was expected.