KB Home has posted a minor loss in its financial first quarter, as the homebuilder observed indications of stability in the housing market.

On Tuesday, KB Home said that its new home orders swelled 5% to 1,913 in the quarter compared with the previous year. In addition, the number of buyers canceling contracts fell to 22% from 28% a year back.

Jeffrey Mezger, company's President and Chief Executive Officer, said, "A number of housing markets may be stabilizing or starting to rebound, though we do not yet see, in many respects, a sustained nationwide recovery".

He added that the company is hopeful to run in profits this year.

The latest results, however, were weaker than analysts had forecast. Its shares slipped 17 cents to $17.27 in premarket trading.

The company reported that it lost $54.7 million, or 71 cents per share, in the three months that ended in February. That compares with a loss of $58.1 million, or 75 cents a share, a year before.

While returns fell 14% to $264 million from $307.4 million a year back, this was less than analysts' prediction for revenue of $277 million.

Based in Los Angeles, KB operates in 10 states and 30 markets. It was declared nation's fifth-biggest homebuilder in 2008 by Builder magazine.

Huge builders noted that home orders have increased since last year, due to low interest rates and government incentives.

But high unemployment and job insecurities is a major concern for some buyers. Sales of newly built homes dropped 11%.

However, home builders are looking forward to the spring season to make up for the losses.

Now let's wait and watch if the spring season helps improve the financial condition of KB and enables it to cover its 1Q loss by bringing some fruitful results.