The Bay area experienced a 24.8% year-over-year gain in home prices in July. The median sale price in the city was $850,000 in August, compared to the national median of $204,000. Somehow I doubt San Franciscans are paid four times as much as the rest of us, so you’ve really got to love it in order to live there.
According to the most recent data from the San Francisco Business Times, KB Homes is the biggest publicly traded homebuilder in the Bay area, followed by Pulte Group (PHM) and Toll Brothers (TOL). In fact, KB Homes is the biggest builder in all of California (based on new homes delivered), where it generates 52% of its revenues. What happens in San Francisco, Los Angeles and San Diego is very important to the company’s future success. On Tuesday PHM announced Q3 revenues that were 29% higher at $549 million with net income up seven-fold to $27.3 million.