The Motley Fool reports on why management at Lennar Corp. sees a bright near-term future for its home-building business.
Any news search for the term "housing market" these days will likely result in news about home sales slowing down, home inventories increasing, and foreclosure starts being up for the first time in a while. If you ask the management team at Lennar (NYSE:LEN) (NYSE:LEN-B), on the other hand, they will paint a picture that is very different. In fact, Lennar seems to think that the underlying trends in the housing market should fuel growth for 2018 and beyond.
On the company's most recent conference call, management highlighted some of the reasons it thinks the housing market is still going strong and how it is helping the market along with new initiatives. Here are several quotes from management and reasons anyone investing in the housing market should consider them when making investment decisions.
Housing is one of those complex markets in which the interplay of several factors can influence home prices and housing starts in one direction or the other. A few factors concerning potential home buyers and investors lately have been the rise in interest rates and rising labor costs for the homebuilding industry, which could put homes out of the affordable range for many buyers. According to executive chairman Stuart Miller, though, there are other factors at play that are more than offsetting the negative effects of these things.
