KB Home co-founder says home prices could fall 20% moreby
Eli Broad, the co-founder of KB Home, told Bloomberg TV yesterday that home prices could fall another 20%. Here’s a link to the story. That is an absolutely enormous amount when you consider that prices have already fallen a bunch. Today the Standard & Poor’s/Case-Shiller Home Price Index for February was released. It showed that the 20-city index fell 12.7% from a year earlier and is down 14.8% from its all-time high in July 2006.
I’m guessing that the execs at KB Home aren’t real happy with Eli Broad, because who’s going to buy a house now if they think that Broad is right about where prices are heading? I don’t know how many shares of KB Home that Broad himself still owns, but it can’t be too many because he doesn’t appear on the list of holders of 5% or more of KB Home shares in the latest SEC filing.
Trivia: KB Home was founded in 1957 in Detroit as Kaufman & Broad Building Company