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Lennar reported a 40 per cent jump in new orders, and its stock has spiked five per cent in pre-market trading on the solid second-quarter earnings.Gross margin on home sales was reported at 22.5 per cent, up 310 basis points from last year’s second quarter. Overall, revenues rose 22 per cent up to $930.2 million.
Lennar’s improvement is a major housing bellwether, so the great earnings report is a great sign for the housing market.
“Evidence from the field suggests that the ‘for sale’ housing market has, in fact, bottomed and that we have commenced a slow and steady recovery process. And while the housing downturn was broad-based and national, the recovery process continues to be very localised,” said Stuart Miller, Chief Executive Officer.
More to come…