KB Homes CEO Still Bullish on Housing Market
KB Home Chairman Jeff Mezger remains bullish on the housing market despite data Tuesday that U.S. housing starts and permits for future home construction fell in April.
"We like how our company is positioned," he told CNBC Tuesday. Many of the markets in which KB Home operates are "showing signs of recovery. So as things stabilize we actually think that there’s better days ahead. I don’t react too much to just the 30-day number."
The Commerce Department said Tuesday housing starts dropped 10.6 percent to a seasonally adjusted annual rate of 523,000 units, below expectations. March's starts were revised up to a 585,000-unit pace from the previously reported rate of 549,000 units.
Mezger said the markets "performing quite well" for KB Home include areas "all up and down the California coast" as well as in Texas. Not doing so well are central Florida, Las Vegas and Phoenix.
"I think each market will now recover at its own pace," he said. "Some of the more challenged markets are going to take some time. But there are some pockets of opportunity in every market."