The nation’s 3rd largest home builder is showing stronger than expected gains in revenue and home sales during the spring selling season.
As home prices continue to rise, Lennar Corp. observed a 53 percent increase in second quarter revenue. The company also reported new home orders increasing 27 percent, illustrating an encouraging housing recovery.
As buyer demand outpaces supply, Lennar has increased its selling price by 13 percent and achieve an average sales price of $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 percent in the second quarter.
Lennar’s competitor Toll Brothers, a builder of luxury homes, recently reported that its second quarter profit increased 46 percent, mainly due to higher demand among buyers and higher selling prices.
Source: “Lennar Says Results Point to Solid U.S. Housing Recovery,” Reuters (June 25, 2013) and “Lennar sales jumps, sees 'solid housing recovery',” The Wall Street Journal (June 25, 2013)
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