Lennar co-CEO Jon Jaffe reported a sluggish start to the spring 2025 selling season, which has led to a rise in unsold new single-family homes. The company has adjusted its sales strategy by increasing buyer incentives dramatically, from 1.5% to 13% of sales. Unsold inventory has grown sharply, with February 2025 reporting 119,000 unsold homes, the highest level since July 2009. This trend highlights a challenging environment for new construction and could signal ongoing issues in the housing market.
This weaker housing demand environment is causing unsold inventory to tick up, with unsold completed new single-family homes in the U.S. rising significantly.
Lennar co-CEO Jon Jaffe emphasized a slow start to the spring selling season, contradicting the seasonal pickup usually seen, highlighting industry challenges.
Lennar's spending on buyer incentives has significantly increased, from 1.5% in Q2 2022 during the pandemic boom to 13% last quarter.
Lennar adjusts its strategies with mortgage rate buydowns, price reductions, and closing cost assistance to adapt to the current housing demand landscape.
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