KB Home's (KBH 41.96) chief executive, Jeffrey Mezger, said Tuesday he expects the housing market to get worse before it gets better, even though sales have improved in some areas of the U.S. Shares of the Los Angeles-based builder were indicated more than 2% lower following the announcement, which comes a day after DR Horton (DHI 21.70), the nation's largest homebuilder, warned of a sharp drop in new home orders, and said the spring selling season is off to a slow start as market conditions remain challenging.
When industry insiders are bearish, you know there's a problem. CEOs are paid to put a good spin on news.
