Updated
Updated · Reuters · Jun 11
Lennar Sees Q3 Deliveries at 20,500-21,500, Missing 22,353 View as Housing Slump Persists
Updated
Updated · Reuters · Jun 11

Lennar Sees Q3 Deliveries at 20,500-21,500, Missing 22,353 View as Housing Slump Persists

2 articles · Updated · Reuters · Jun 11

Summary

  • 20,500 to 21,500 homes is Lennar's third-quarter delivery forecast, below analysts' 22,353 estimate, and the outlook sent shares down 3.2% after hours.
  • High mortgage rates, weak consumer confidence and job uncertainty kept buyers cautious, while incentives such as mortgage-rate buydowns and persistent inflation squeezed margins.
  • 20,519 homes were delivered in the second quarter, up 2% from a year earlier, but the average selling price fell 5% to $371,000 as market weakness forced higher incentives.
  • Second-quarter adjusted profit beat expectations at $1.31 a share versus $1.24, but revenue fell more than 5% to $7.94 billion, missing the $8.02 billion consensus.
  • Lennar said the housing market still faces elevated rates, affordability constraints and geopolitical uncertainty; its stock remains nearly 50% below its September 2024 high.

Insights

Are builder incentives a lifeline for buyers or a Band-Aid on a broken housing market?
With builder profits falling, is a tax overhaul the only way to build more homes?
Could a radical land tax finally solve America's housing affordability crisis?