U.S. Markets closed

KB Home buys 40 acres for houses in California

LOS ANGELES (AP) -- KB Home said Thursday it had acquired 40 acres of land in Eastvale, Calif.

The Los Angeles-based company said it plans to build 207 houses on the site east of Los Angeles. KB Home bought the land from Stratham Communities.

Like other builders, KB Home has been helped this year by a stronger housing market. In June, KB Home reported a narrower loss in the second-quarter, as the company built more houses and sold them at higher prices. Deliveries of new houses increased 39 percent to 1,797, while the average selling price rose 25 percent to $290,400.

The National Association of Realtors reported Wednesday that sales of previously occupied homes in July hit their highest level since November 2009. Sales jumped 6.5 percent last month to an annual rate of 5.4 million. Over the past year, sales have surged 17.2 percent.

Housing stocks were broadly higher in Thursday trading. KB Home rose 54 cents, or 3 percent, to $17.27. The company's stock is up 9 percent for the year, trailing behind the 16 percent gain for the Standard & Poor's 500 index.