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In his conference call with analysts this morning, KB Home chief executive Jeffrey Mezger said ‘in many markets we’re seeing a bottom form on price.’ And ‘in Southern California, [monthly] payments are lower than rent in many areas today.’

KB Home operates in the lower-end of the new-home market, in areas hammered by foreclosures. It’s not really news to anyone following the market that prices in that segment have fallen the most, and may not have much more to drop.

The Los Angeles home builder’s new home orders were down 31% in the second quarter from a year ago, and its average new home sales price was down 4.6%, to $212,600.

Revenues fell 40%, to $384.5 million, and the company posted a net loss of $78.4 million, or $1.03 per share. A Bloomberg survey of analysts had an average forecast of a 63 cents per share loss.

-- Peter Y. Hong

Related: KB Home chief says prices are stabilizing in some areas