posted at 08:50
Author Name: Joe Weisenthal
KB Home CEO On First-Time Homebuyers
The pace of activity still seems sub-normal, which is being attributed to a combination of: Lack of supply, the difficulty of getting a mortgage, and subdued activity among tradition first-time homebuyers. Here's the key back and forth, where an analyst from JPMorgan asks for clarification on first-time homebuyer activity. Jeff, you mentioned that in your opening remarks that there was evidence of a reemergence of the first-time buyer and I was hoping you could expand on that a little bit in terms of that if that's something you are seeing in your own business itself and particularly given that you continue to perhaps shift to maybe away from the historically traditional first-time buyer more of a financially - more financially a stronger type of first time buyer that's more financially able and more perhaps the move up community, so I was just wondering if this was something that you kind of saw specifically within your own business or if it was more just kind of general comments as it relates to perhaps mortgage lending standards or other trends that you see out there? In the higher income with land constrained areas I don't know that our first-time buyer mix has changed. It's a different first-time buyer I know it's a higher income buyer than we would have seen 10 years ago. It's a because of the job growth we are seeing more first-time buyers. Where the economy is booming, like it is in Texas, you're starting to see first-time home buyers. If the economy picks up in more parts of the country, then the first-time homebuyer will really begin to re-emerge.

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