The U.S.' second largest homebuilder sold more homes and fattened its bottom line as the housing market continued to recover. Fred Katayama reports.
Lennar sold more homes at higher prices in its latest quarter. Homes sold rose a solid 12 percent. Profit shot even higher as the U.S.' second largest homebuilder cut costs by shifting more toward digital marketing. Lennar said low interest rates, modest wage growth, and low unemployment, among others things, keep stoking the recovery of the housing sector that began five years ago. Buckingham Research analyst Mark Weintraub said, "The housing market continues to improve at a measured but meaningful pace, and Lennar is executing well." Home sales rose nearly across the board, led by the central region. One weak spot: Houston. The troubles encountered by the energy sector led to a slight decline in home deliveries there. Lennar shares chipped away at its nearly 5 percent loss this year in early trading. While acknowledging that the housing recovery is maturing, Lennar foresees a strong performance for the year. Orders, an indicator of future revenue, rose 10 percent.