KB Buyer Cold Feet

This is an interesting article about KB Home cancellations.

Snip...

"But overall orders for KB Home dropped 16 percent. The company's domestic orders fell 12 percent, paced by slides of 30 percent in the Southwest, 25 percent in the West, and 10 percent in the Central region. The declines were heavily driven by order cancellations, which grew from 25 percent last year to 32 percent.

On one level, the cancellation rate can be viewed without alarm. It's actually closer to normal levels than the year-earlier figures. But it does support the notion that housing in general is moving away from the boom conditions that have been powering company financial performance and homebuilder share prices. Also, KB Home acknowledged that cancellations usually result from a buyer's inability to get financing but lately it's occurring among buyers who do qualify but get cold feet."

Full article...