Lennar Model Homes, Corporate Photography by Mark Skalny
(Disclosure: Rose Law Group represents Lennar.)
By Steve Ladurantaye
Lennar delivered more homes than expected in the first quarter, but incentives drove down its average sales price, which was 1% lower than the same quarter last year at $408,000.
Why it matters: As America’s second-largest builder, the company’s results are seen as a bellwether for the industry. Its use of incentives suggests that consumers remain skittish about prices and are looking for breaks where they can get them.
“We continued to use incentives, including interest rate buydowns, to reconcile home prices to market conditions,” executive chairman and co-CEO Stuart Miller said. “These incentives bridged affordability to activate sales and manage inventory, while continuing to provide supply to the market. Generally speaking, net prices for homes, together with rents in overbuilt apartment markets, have started to decline, as demand remains constrained by affordability.”
