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]

Core Insights - The Canadian Mortgage and Housing Corporation (CMHC) reported a significant decline in new housing starts in August, with a month-over-month decrease of 16% to 245,800 units, falling short of the market expectation of 277,500 units and down from the revised July figure of 293,500 units [1] National Performance - The overall national housing market is showing signs of cooling, as indicated by the substantial drop in new housing starts [1] - Despite the national downturn, some major cities are experiencing growth in new residential construction [1] Regional Highlights - In urban areas with populations exceeding 10,000, new housing starts in August increased by 10% year-over-year, reaching 184,000 units [1] - Montreal led the growth with a 32% year-over-year increase, while Vancouver saw a significant rise of 46%, primarily driven by multi-unit residential projects [1] - The Toronto area reported new housing starts that remained relatively stable compared to the same period last year [1] Market Adjustment - The notable decline in new housing starts reflects a transition phase for the Canadian housing market, moving from a previously active period into a phase of adjustment [1]