KB Home, a big builder in the Tampa Bay area, had a fairly decent business quarter...considering. While the company lost $58 million, it reported a rise in new orders and halved its cancellation rate the past year.

Still, KB execs continue to talk down the housing market, as reported in the Wall Street Journal:

KB Home reported a narrower fiscal first-quarter loss on fewer write-downs and a 26% rise in net orders, but the home builder held out little hope for a housing rebound this year.
KB Home Chief Executive Jeffrey Mezger said the builder sees "no meaningful improvement in market conditions" and continues to operate in a market "severely challenged by inventory oversupply, declining home prices, tightening lending standards, rising unemployment and weakening consumer confidence."

In an attempt to meet diminishing expectations from buyers, KB's Tampa operation has begun offering town homes for about $100,000 and two-bedroom single family houses. That focus on entry level buyers has helped it compete with low priced foreclosures glutting the market.