Lennar Homes, one of Orange County’s largest builders reported that its first quarter earnings were off a full 73% compared to last year. The MarketWatch.com article continues with:
"The typically stronger spring selling season has not yet materialized. These soft market conditions have been exacerbated by the well-publicized problems in the subprime lending market," said CEO Stuart Miller.
Lennar went futher by withdrawing its earning guidance for the duration of 2007. As is so often quoted over at CalculatedRisk, their estimates are "no longer operative". It seems that the reality is beginning to sink in as consumer confidence has dropped for the first time in 5 months, and homebuilders-previously optimistic-are now seeing the tough reality.
Last 3 posts by Morgan
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