Analysts are looking to Tuesday for fresh evidence of how the housing market is doing amid a stubbornly sluggish economic recovery in the crucial spring selling season. The Wall Street Journal reports. (subscription required.)
Investors this week will see how those projections are shaping up as two of the nation’s largest home builders report second-quarter earnings. Results on Tuesday from Lennar Corp. and KB Home will provide insight into the crucial spring selling season, a peak time for home buying as weather improves and families look to settle into school districts before fall.
Lennar emerged from the housing bust with one of the stronger balance sheets among large home builders, allowing the Miami company to buy up large swaths of land at low prices early on in the recovery.
KB Home entered the housing recovery with more debt and less cash, preventing the company from making as many strategic land purchases. The company has plans to increase land spending this year, but prices are higher, making it more difficult to build moderately priced homes that could attract a higher volume of first-time buyers.