Revenue increased 29% to $8.9 billion from the same quarter a year ago. Its net income increased to $1.5 billion, from $1.4 billion, as profit margins on home sales grew. Home deliveries were up 13% to 17,248.said the cancellation rate was 21%, which was higher than normal. It started construction on more homes than it sold. Lennar often prefers to keep the number of home starts and sales close to the same.
Beckwitt said Lennar has completed price adjustments successfully in 22 markets, and the lower prices have resulted in more sales and prevented buyers from canceling. These markets include Tampa; Orlando; Jacksonville; Coastal Carolina; Atlanta; Chicago; Nashville, Tennessee; Raleigh, North Carolina; Dallas; Phoenix; the Inland Empire of California; Sacramento; and Portland, Oregon.
Finally, there were seven markets where buyer traffic has slowed and Lennar has yet to find the right prices to spur buyers to close, Beckwitt said. That is the case in Austin, Texas; Philadelphia; Minnesota; Utah; Pensacola; Reno, Nevada; and Boise, Idaho. The company projected home deliveries between 20,000 and 21,000 and new orders between 14,000 and 15,000 in the fiscal fourth quarter. Miller said Lennar will continue looking for land purchases, but the prices will depend on the current market for homes, so land sellers should adjust their expectations. Lennar may also look to purchase home sites from other buildings that can't complete them, he added.