Lennar’s positive earnings fuel optimism for housing market
by Boardroom Brief Staff on April 06, 2012
Recently announced first quarter earnings suggest good news for the country’s homebuilders, construction workers and an economy crippled by the 2008 financial crisis.
Miami-based Lennar Corporation, one of the nation’s largest homebuilders, released Q1 earnings of $15 million – the strongest first-quarter sales since the 2008 collapse of the economy. According to Lennar’s CEO, Stuart Miller, last year’s first-quarter earnings of $27.4 million were distorted by $37.5 million in revenue from a litigation settlement.
Lennar’s announcement included total revenue of$ 724.9 million, up 30 percent from the same time last year, as well as a 33 percent increase in new orders and a 39 percent increase in the backlog of homes for delivery.
Add to that a positive forecast for 2012: Building activity is expected to increase, and consumer confidence to be boosted by low mortgage interest rates and a more favorable job climate for Americans, according to Freddie Mac’s U.S. Economic and Housing Market Outlook for the year.
National homebuilders’ noticeable improvement in sales is encouraging and points to a stabilizing housing market.
Read the related South Florida Business Journal article: How Lennar’s earnings signal better times in housing.