Lennar's New-Home Orders Soar 27%
June 26, 2013
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 percent increase in second-quarter revenue. The company also reported new-home orders climbing 27 percent, signaling 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 percent 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 percent 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 percent, 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)
Updated: November 21, 2019