Lennar Corp. (NYSE:LEN) reported earnings on Wednesday, and in the earnings conference call, the company said it has seen a strengthening in the housing market as spring began. The company missed earnings estimates by a penny, due in part to weather-related construction delays, but shares still gained. Reuters reports:
“It seems as though the market paused in the back half of 2019, corrected in the first quarter and is now on solid footing as we begin the 2019 spring selling season,” Lennar Executive Chairman Stuart Miller said on conference call with analysts.
The homebuilder also signaled that incentives would start to decline in the second and third quarter, soothing concerns raised last quarter that it may increase incentive spending to boost sales.
Lennar’s use of incentives during the quarter ticked up by only 40 basis points year over year, which seems reasonable based on the environment and does not point to overly aggressive price reductions to push sales, Morningstar analyst Brian Bernard said.
The company expects to deliver between 50,000 and 51,000 homes in 2019 at an average price of $400,000 to $405,000. Analysts were expecting 50,545 units at $421,000.
