The 2025 spring housing market is seeing a slow start for homebuilders, with companies like KB Home and Lennar echoing concerns over muted demand despite healthy traffic in communities. KB Home has implemented various affordability strategies, such as mortgage rate buydowns and price cuts, in response to the market's softness. CEO Jeffrey Mezger noted adjustments were made mid-February to enhance value, leading to a positive buyer response. With an average sales price of $500,700 reported in Q1 2025, the company anticipates a decline in average sales price for the fiscal year.
In mid-February, we took steps to reposition our communities to offer the most compelling value, and buyers responded favorably to these adjustments.
We thoughtfully and selectively adjusted pricing as needed on a community by community basis to stimulate demand and achieve a higher selling pace.
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