posted at 07:50
Author Name: Calculated Risk
Lennar And KB Home On Housing
Lennar Corporation, the second largest US home builder in 2013, reported that net home orders in the quarter ended May 31, 2014 totaled 6,183, up 8.4% from the comparable quarter of 2013. Home deliveries last quarter totaled 4,987, up 11.7% from the comparable quarter of 2013, at an average sales price of $322,000, up 13.8% from a year ago. In its conference call officials said that the company's sizable land/lot position left it "Well positioned" to take advantage of an increase in demand from first-time home buyers, but officials said that demand from first-time home buyers last quarter remained very weak - which officials attributed mainly to continued very tight mortgage lending standards. KB Home, the fifth largest US home builder in 2013, reported that net home orders in the quarter ended May 31, 2014 totaled 2,269, up 4.9% from the comparable quarter of 2013. Home deliveries last quarter totaled 1,751, down 2.6% from the comparable quarter of 2013, at an average sales price of $319,700, up 10.1% from a year ago. The company's order backlog at the end of May was 3,398, up 8.6% from last May. In an excessively long opening remark on the company's earnings conference call, KB Home's CEO Jeff Mezger made two observations that raised analysts' eyebrow: he said that while mortgage credit remained tight, the company has seen evidence of easing in credit standards; and the company has seen some "Re-emergence" of first-time home buyers. On the re-emergence of first-time home buyers, Mezger said that there's been an increase in first-time home buyer purchases in some areas of Texas where job growth has been strong. Net Home Orders,3 Months Ending:5/31/20145/31/2013% ChangeLennar 6,183 5,705 8.4% KB Home 2,269 2,162 4.9% Hovnanian 1,799 1,862 -3.4% Total 10,251 9,729 5.4%. Earlier this week, Census estimated that new SF home sales in the first five months of 2014 totaled 194,000, up just 0.5% from the first five months of 2013.

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