Lennar Corp., one of the nation’s largest homebuilders, has lowered home prices and boosted incentives in most of its markets across the country in response to higher interest rates.
“The housing market has continued to weaken in response to the Fed’s too late but now very rapid and aggressive response to inflation,” Miller said. “That suddenness has always led to a pullback in housing demand. The additional increase of 75 points yesterday, together with the articulation to do more, suggests that even more challenges lie ahead.”
Lennar generated higher sales and profits for the third quarter ended Aug. 31, but reported headwinds with new orders and cancellations. The pricing trends varied widely by region as Lennar prioritized moving finished homes quickly. Beckwitt placed the regions Lennar operates in into three categories.
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.