742, Evergreen Terrace

The makers of the $120,000 real-life replica of The Simpsons house back in good old ’90s, KB Homes, reported a strong quarter thanks to the housing market recovery.

The reported quarter’s revenue was up 24% and net income for the six-month period rose an impressive 60%!

In 2016, it delivered a total of 9829 homes and $3.6 billion in revenue. Compare that to 2005, at the dizzying height of the real-estate boom, KB Homes had delivered 40,000 homes and approx. $9 billion in revenue!

KB Homes’ primary customer base is a first-time home buyer and new home sales data that came out last Friday showed a 2.9% rise for the month of May.

As we discussed last month when Toll Brothers report came out, things are finally looking up for the housing market with the biggest worry coming from Janet Yellen and her team at the Fed — the June 14 interest rate hike and any future hikes have to be factored in!

This was originally published as a newsletter on June 28, 2017. To subscribe to the newsletter, click here