Lennar, one of the largest construction companies building over 65,000 homes just last year alone. They are now facing unexpected difficulty of selling the homes and trying everything to make sales. This raises concerns about the company’s future and has created speculation about the potential future of the real estate market. Will the result of Lennar collapse cause a market crash?
Let’s uncover the construction, halting and financing challenges Lennar is currently facing in 2023. Gaining valuable insights about the current real estate market.
Key takeaways:
- Lennar, a successful construction company since 1954, are facing massive challenges selling homes in 2023.
- Lennar operates all across the United States causing concerns throughout the whole country.
- Despite building homes are people willing to purchase with these high interest rates.
- We aim to provide analysis of Lennar’s performance in 2023, showcasing the obstacles they’re facing.
to much building & not enough selling
The current real estate market has dramatically changed in 2023. The buyers market has peaked in the last couple of years with record-low interest rates and buyers willing to pay well above asking prices, the good days. As interest rates soar to fight inflation, the question “Why buy now when there’s a possibility of rates maybe dropping in the near future?”
This uncertainty has led many motivated buyers to sit back and patiently wait. This causes Lennar to panic because with the sale of the homes will cover the costs of debt they’re borrowing from banks.
Lennar is very motivated to boost homes sales by the third and fourth quarter by implementing a new strategy In hopes it will cause people to finally start buying. They have consistently reduced prices, offered attractive incentives and simplified the purchasing process.
Lennar: where are they building now?
Lennar’s construction plan has span across some of the most populated places to live in the United States, including areas such as Log Angeles, Florida, and Texas. Lennar is currently building 28 active communities in California alone, from the low $600,000 all the way to $2+ million dollar properties. Lennars expansion and the rapid growth of is leaving many communities feeling very empty as no one is moving into them.
Communities currently being built:
- California : 28 communities
- Texas: 13 communities
- Florida: 55 communities
- New york: 24 communities
Lennars construction projects in the current year have led to a large workforce of 9,900 currently employed. This large scale of employment signifies the size of Lennars commitment to meeting housing demands. However, if we start seeing signs of layoffs, than major concerns about the future of the market would escalate.
lennar communities are currently vacant
A recent drive through Fontana California, I couldn’t help but notice that this new “community” is quiet. I decided to visit Lennar’s website, and I discovered that they had reduced the prices of their homes continuously throughout the last six months.
In this video this agent will guide and take you with him to show you how Fontana California currently stands. Gain a greater understanding of only one of Lennars projects.
Timing is key: prepare for homeownership
Purchasing a home is a dream to many however it requires preparation and being ready to take the opportunity when it presents itself, let’s dive into how you can start preparing.
- Access your Finances: Have a deep understanding on where you stand, including your credit score, income, and what you already qualify for. Going to your bank and asking how to qualify for more will help you have a better understanding on the route it takes.
- Creating a budget is key: Managing your expenses and saving effectively will always benefits you. Building this habit will save you thousands of dollars in the long run.
- Saving for a Down Payment: I recommend saving for a down payment of 20% to avoid private mortgage insurance, however taking advantage of 3% down is okay as well, just recommend to do your due diligence on what works best for you.
- Research the Housing Market: Understand where you would like to live, how is the current market, is it currently dropping, is the demand low? This research will help you make informed decisions when the time comes.
- Conduct home inspections and try to personally understand the basic so when you arrive to open houses you know enough to look for the major concerns.
