KB Home 1Q16 Earnings Call Notes

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Jeff Mezger

There is an affordability issue in CA that is pushing demand inland

Sure. But Susan, you’ve followed us for a while and I’ve told this story before about how the California market can ebb and flow. And what we’re seeing right now is continued strength along the coasts, both north and south, that’s moved pricing up, and so it’s an affordability challenge in the more expensive coastal areas and it pushes demand further inland. And as we saw, as the quarter unfolded, the inland areas sold well and had good momentum coming out of the quarter.

Consistent market dynamics through the quarter

“sequentially as the quarter played out, we saw a fairly consistent market dynamics through the quarter, so, March, April, May held pretty well throughout, I think it got a little bit stronger toward the end.”

May was a little bit stronger than March

“Yup. Patrick, we’re two weeks into the quarter so we typically don’t give a lot of color on the current month activity. As I shared, May was probably a little bit stronger than March but we had a nice progression through the quarter with pretty consistent demand. We’re pleased with the results.”