KB Home CEO Jeff Mezger '77 Sees "Significant Deterioration in the Housing Market"
October 11, 2007
October 11, 2007, Greencastle, Ind. - The third quarter was another tough period for the housing industry, report Jeffrey Mezger, CEO of KB Home and 1977 graduate of DePauw University, and other heads of major building companies. "There was a significant deterioration in the housing market, and this accelerated dramatically toward the end of the quarter," Mezger tells USA Today. He notes that the market reached "the lowest levels of the current housing downturn" in terms of buyers touring model homes and signing contracts to buy properties.
Government statistics show that despite incentives offered by many builders, sales of new homes "fell in August to their slowest pace in 12 years, and the median price fell 7.5%, the sharpest annual drop in 37 years," reports the newspaper. "The confidence level of builders has fallen to its lowest since the last housing recession."
But Noelle Knox reports, "There are still some positive signs. Interest rates are still historically low. And buyers with good credit enjoy plenty of loan options. There are also pockets across the country where home sales are still healthy and prices are rising. In the greater metro area of Tulsa, sales rose more than 7% in August to near-record levels. Prices also climbed. The real estate markets are solid, too, in most parts of South Dakota and Texas, for example."
Access the complete story at USA Today's Web site.
Learn more about Jeff Mezger in this previous article.Back