New Construction Homes Are Still Selling During Coronavirus Pandemic

Dated: 03/24/2020

Views: 40

contractor meeting on home building site fstop123 / Getty Images

Share this article:FacebookTwitterLinkedInPrintShare

Lennar Corp.: Coronavirus Won’t Kill New Construction

In a call with industry analysts, Lennar’s chairman said they’re working on virtual ways to connect with buyers, and construction has been halted in only a few cities.

NEW YORK – Low interest rates and inventory will draw buyers to the market, Lennar Corp.’s executive chairman, Stuart Miller, said on a conference call with industry analysts last week. The home builder, one of the largest in the country, said it was working on new ways for buyers to purchase new homes virtually, such as by leveraging its digital programs and offering drive-through closings. Such closings enable home buyers to sign documents from their car.

“Even in the current environment, we are selling homes,” Miller said. “Since the first quarter, new orders continue to be strong.”

Miller acknowledged that construction has been halted in some cities by local governments due to shelter-in-place restrictions aimed at slowing the spread of COVID-19. But Miller said Lennar hasn’t halted its production yet, and the company will continue to build homes and adapt to the changing environment.

Miller believes that low mortgage rates could incentivize a rush of new-home buyers once the coronavirus pandemic eases. Still, the company has slowed its land purchases and focused on reducing its outflow of cash to boost its liquidity and balance sheet position, a statement read on its earnings.

Lennar reported strong first-quarter earnings, totaling $398.5 million compared to $239.9 million in the first quarter of 2019. Its new orders also rose 18% on a year-over-year basis, with 12,376 homes in the first quarter.

Source: “Lennar Says Homes Are Still Selling Despite Coronavirus,” The Real Deal (March 19, 2020)

© Copyright 2020 INFORMATION INC., Bethesda, MD (301) 215-4688


***REMEMBER TO ALWAYS BRING YOUR OWN AGENT TO HELP YOU NEGOTIATE WITH THESE BIG BUILDERS AND HELP YOU NAVIGATE THE PROCESS OF BUILDING A HOME. IT DOES NOT COST YOU ANYTHING TO HAVE REPRESENTATION FROM YOUR OWN AGENT AND IT DOES NOT AFFECT THE PRICE YOU WILL GET FOR THE HOME. YOUR AGENT MUST BE PRESENT THE FIRST TIME YOU VISIT A COMMUNITY SO PLEASE DO NOT JUST POP IN AS THEY WILL NO LONGER BE ABLE TO HELP YOU.

Want to Advertise on this Site?

Latest Blog Posts

Listen To Our Pod Cast On The Social Distance Festival At I Love Palm Beach

Please Listen to our latest Podcast...Local Music and Virtual Concerts...You can find other episodes at "I Love Palm Beach" on google podcast, Apple podcasts, Spotify and your other favorite podcast

Read More

New Construction Homes Are Still Selling During Coronavirus Pandemic

fstop123 / Getty ImagesMARCH 23, 2020Share this article:FacebookTwitterLinkedInPrintShareLennar Corp.: Coronavirus Won’t Kill New ConstructionIn a call with industry analysts, Lennar’s

Read More

Housing Inventory Is Down Over 11 Percent This Year

Photo By Mark Goodwin / Getty Images FEBRUARY 7, 2020 Share this article: FacebookTwitterLinkedInPrintShare U.S. Housing Supply Reaches All-Time Low Realtor.com: Housing inventory

Read More

This Is Not Like The Market Crash Of 2008 Its Just An Adjustment Due To Uncertainty

5 Simple Graphs Proving This Is NOT Like the Last TimeWith all of the volatility in the stock market and uncertainty about the Coronavirus (COVID-19), some are concerned we may be headed for another

Read More