In defiance of earlier projections by analysts, home builder Lennar Corp. posted double-digit-percentage growth in the first quarter of the year—a development that market players said might finally indicate improved economic health and gradual recovery in the U.S. housing market.
The Miami-based firm, considered to be one of the largest builders in the U.S., saw a 12 per cent increase in deliveries for Q1 2016 on a year-over-year basis, with a similar 13 per cent spike in backlogs and 9.6 per cent growth in new orders.
Meanwhile, the average price of the firm’s delivered homes shot up by 26 per cent to a record-high $366,000. Revenue increased by 21 per cent, up to $1.99 billion.
Lennar officials pointed at several crucial factors that influenced these improved figures.
“The housing market in continuing its slow and steady recovery driven by years of underproduction, tight inventory levels, attractive interest rates, and the lowest unemployment levels since 2008,” Lennar chief executive Stuart Miller told the Wall Street Journal
on Friday (March 25).