Optimism Spurs Homebuilders After S & P; Report

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Shares in local homebuilders KB Home and Ryland Group Inc. jumped early Tuesday after a report estimated U.S. home prices have fallen more than 15 percent over the past year spurring optimism that consumers may begin buying homes again.


Shares in Los Angeles-based KB surged 10 percent to $19.27 while Calabasas-based Ryland added 9.4 percent to $25 in morning trading.


According to the Standard & Poor’s/Case-Shiller home price index, the top 20 major U.S. cities have seen prices drop a record 15.3 percent in the past year and are now back to where they were in 2004.


KB is to report second-quarter earnings Friday.

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