KB Home (NYSE:KBH) has delivered strong results for shareholders over the past three years. Over this time period, the stock has delivered a total return of around 76% compared to a total return of approximately 31.5% delivered by the S&P 500 (SPY).This outperformance is especially impressive given the fact 30-year mortgage rates have risen from around 2.7% to 6.6% during that time period. The impact of higher rates has driven a massive slowdown in the housing market with the annual pace of existing home sales having dropped from 6.6 million to 3.8 million over the past three years. The annual rate of new home sales has fallen to 590,000 as of November 2023, down from a rate of roughly 1,000,000 three years ago.Despite KB Home’s strong run over the past three years, I believe the stock remains fairly attractive based on valuation. I believe the shares are poised to continue their recent outperformance as the company is likely to benefit from falling interest rates.Can KB Home’s Recent Outperformance Continue?KBH Data by GuruFocusBuilt-to-order mo …
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