Lennar, the second-largest homebuilder in the U.S., reported a disappointing start to the spring selling season, needing to implement significant sales incentives to maintain sales momentum. Co-CEO Jon Jaffe highlighted that Florida and Texas, their primary markets, are experiencing weakened housing demand. He noted that buyers in these states require more assistance due to rising inventories and increased mortgage payment challenges. Lennar's average sales price has also seen a slight decline, necessitating further sales incentives which accounted for 13% of the final sales price in the last quarter, revealing a broader trend across the housing market.
We do not see the seasonal pickup typically associated with the beginning of the spring selling season. So we continue to lean into our machine focusing on converting leads and appointments and adjusting incentives as needed to maintain sales pace.
In general, homebuyers in Florida and Texas, our two highest volume states, needed more help than most other markets around the country.
All markets around the country require incentives to assist buyers in the current home buying environment.
Last quarter, Lennar spent the equivalent of 13% of the final sales price on sales incentive.
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