COVID-19 hits the housing market
COVID-19 is starting to affect the local housing market if a recent quarterly report from one of Southern California’s most prominent homebuilders is any indication.
Revenue, homes delivered and average selling price were all down substantially year-over-year for the quarter that ended May 31, according to Los Angeles-based KB Home.
The company’s homebuilding operating income – $51.6 million – was down slightly compared with 2019. Net income and earnings per share eased to $52 million and 55 cents, respectively, compared to net income of $47.5 million and 51 cents per share.
“The prolonged stay-at-home public health orders, resulting in economic shutdown and our conservative approach to navigating the uncertain environment significantly impacted our orders during the quarter,” said Jeffrey Mezger, the company’s president, chairman, and chief executive officer, in the statement. “However, following a low point in April, we are very encouraged by the resilience of housing market demand.”
KB Homes is one of the largest homebuilders in Southern California, with multiple projects in the Inland Empire.