Lennar’s New-Home Orders Soar 27%
The nation’s No. 3 home builder is reporting stronger-than-expected gains in revenue and home sales during the spring selling season.
With rising home prices, Lennar Corp. saw a 53 % increase in second-quarter revenue. The company also reported new-home orders climbing 27 %, signalling a “solid housing recovery,” says Chief Executive Stuart Miller.
Miller says that buyer demand has continued to outpace supply, which has allowed Lennar to increase its selling price 13 % and average $283,000 during the second quarter.
Lennar has been actively purchasing land to try to meet increased demand. The company’s backlog of ordered homes that have not yet been completed rose 55 % in the second quarter.
In January, the company announced it would also be entering into the apartment rental business to take advantage of the booming rental market as well.
Lennar’s rival Toll Brothers, a luxury home builder, reported in May that its second-quarter profit soared 46 %, due to higher demand among buyers and higher selling prices.