Strong home sales 'for the foreseeable future'

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Real Estate

Lennar, one of the nation’s biggest homebuilders, posted year-over-year increases in profits, deliveries of new homes, and new orders in the third quarter on the heels of a robust housing market fueled by low interest rates and tight inventory, according to a company earnings report Tuesday.

Lennar earned a net profit of $664.4 million in the third quarter, up 30 percent from a $513.4 million profit at the same time a year ago. The company delivered 13,842 homes in Q3, up 2 percent year over year. New orders (sales) of homes clocked in at 15,564, up 16 percent, and the dollar value of those new orders rose 20 percent to $6.3 billion. The builder’s backlog rose 4 percent to 19,697 homes — a dollar value of $7.9 billion, also up 4 percent.

“Our third quarter results benefited from robust market conditions combined with the solid execution of our homebuilding and financial services businesses,” said Stuart Miller, Lennar’s executive chairman, in a statement.

“Fundamentals in the housing market continued to remain strong supported by record low interest rates and a continued undersupply of new and existing inventory,” Miller continued. “The housing market continued its strong rebound from the significantly weaker sales environment earlier in the year as a result of COVID-19.”

“Given strong demand and limited new and existing home inventory, we expect home sales to remain strong for the foreseeable future,”

More here.

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