KB Home Launches Villas At Sycamore Farms In Surprise

Leading U.S. homebuilding company, KB Home (NYSE:KBH) has launched Villas at Sycamore Farms in the South Surprise area outside of Phoenix.

KB HOME Price

KB HOME Price | KB HOME Quote

This villa is ENERGY STAR® 3.0 certified and equipped with advanced energy- and water-saving features. Apart from flaunting the master-planned living amenities, the Villas at Sycamore Farms is in close proximity to the new Loop 303 which makes commuting to large employment centers pretty easy. Boosting its connectivity, the residential area is also close to Luke Air Force Base and downtown Phoenix.

Meanwhile, the residents will have access to planned community amenities like a pool, ramada, rock climbing and open green space. Villas at Sycamore Farms is also near to several off-site recreational facilities including Surprise Stadium, Surprise Tennis and Racquet Complex, DreamCatcher Park, Surprise Aquatic Center and quite a few golf courses.

Solid Home Sales

As released by the U.S. Census Bureau and the Department of Housing and Urban Development on Aug 23, new home sales rose almost to an unexpected nine-year high in July, courtesy of solid demand in a recovering economy.

Sales of new single-family homes rose 12.4% at a seasonally adjusted annual rate of 6,54,000 units in July from a downwardly revised June rate of 5,82,000. The number was reportedly the highest since Oct 2007 and represents a 31.3% increase year over year.

Strong KB Home Results

A healthy housing industry and strong demand trends helped KB Home delivered impressive quarterly results in the first half of 2016. The company surpassed the Zacks Consensus Estimate on both counts in the first two quarters, thanks to strong backlog levels in the previous quarters.

That said, KB Home’s community count, which declined during the second quarter of 2016 due to fewer home openings, is expected to decline further in the third quarter of 2016. The company does not expect community count to recover untill 2017 beginning. Though demand in Houston is stabilizing, it will take a while before it makes a turnaround.

Zacks Rank & Key Picks

KB Home carries a Zacks Rank #4 (Sell).

Investors interested in the construction sector may consider stocks like MDC Holdings Inc. (NYSE:MDC) , PulteGroup, Inc. (NYSE:PHM) and TRI Pointe Group, Inc. (NYSE:TPH) . While MDC Holdings and TRI Pointe Group sport a Zacks Rank #1 (Strong Buy), PulteGroup carries a Zacks Rank #2 (Buy).

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