KB Home (NYSE:KBH) ‘s shares plunged about 2% in pre-market trading  after it announced a worse fourth-quarter profit, sparkly a gain from financial services business in the earlier year. The homebuilder firm generated revenue 20%, driven by a boost in number of homes delivered and a upbeat average selling price.

The firm reported that it was help by improved housing market conditions and upbeat demand for bigger homes. Together earnings per share and revenues beat analysts’ prospects.

The firm declared it builds 2,122 homes, increased 6% during the quarter from previous year reflecting mostly growth in its West Coast and Central homebuilding regions. Largely average selling price surged 14% to $270,700. KBH said average selling prices were senior across all of its homebuilding areas, with raises of about 23%.

President and CEO of the company,  Jeffrey Mezger stated that they surged their deliveries and generated solid top-line growth, a advanced housing gross profit margin and constant improvement in their selling, general and administrative costs ratio, all of which interpreted to higher homebuilding operating income.

The economists on Thursday anticipate the National Association of Realtors to declared that sales of before occupied U.S. homes likely increased previous month to their highest level in over 2 and 1/2 years.

On Monday, a new review launched by the National Association for Business Economics explained that top business economists think that modest growth will be constant in 2013, escort by increasing demand for housing.

According to a poll of analysts by FactSet, the 10 cents-per-share profit breezed previous Wall Street anticipations of 6 cents per share.

KB Home’s full-year loss cut to $59M, or 76 cents a share. In the previous year, the Los Angeles firm lost $178.8M, or $2.32 a share.

Annual revenue moved up 18% to $1.56 billion from $1.32 billion.