By KRIS HUDSON and the Wall Street Journal
One of the home-building industry’s leading chief executives on Wednesday outlined five themes for the housing market’s outlook, focusing on tight inventories, stringent mortgage standards and the preferences of millennials.
Stuart Miller, CEO of Lennar, the No. 2 U.S. builder by homes sold behind D.R. Horton, detailed his five themes against the backdrop of Lennar’s strong earnings for its fiscal second quarter ended May 31. Lennar posted a heady 18% increase in orders in the quarter from a year earlier to 7,271 and an 8% increase in average sales price to $348,000.
Investors also took note that Lennar’s gross margins, often among the best in the industry, declined by a manageable 1.7 percentage points at a time when peers have suffered larger declines. Lennar’s stock was at $51.44 in late-afternoon trading Wednesday, up $2.14, or 4.37%.
Mr. Miller took the opportunity of Lennar’s conference call with investors on Wednesday to elaborate on five themes he sees heavily influencing today’s housing market, both positively and negatively. Here’s a look: Read More >