Company Overview - Lenar experienced a challenging Q3, with stock down over 3% due to revenue missing estimates and lower delivery guidance [1] - The company's home building gross margins fell to 17.5%, down from 29% in 2022 during the housing boom [1] Market Conditions - The housing market is facing continued softening, impacting sales volume and requiring additional incentives to maintain expected pace [1][2] - Average selling prices declined by 9%, indicating widespread affordability issues across the industry [3] Industry Insights - Major builders are responding to market conditions by lowering prices, offering incentives, and buying down mortgage rates to improve affordability [4] - The only builder expressing optimism for the future was Toll Brothers, a luxury home builder, highlighting a divergence in market sentiment among builders [4]
Lennar co-CEO on Q3 earnings miss: This has been a difficult housing cycle