Lennar reports 1st quarter profits plunge 73%. What does this mean to Austin and the homebuyer?

March 27, 2007

Let’s first put this in perspective with a quote, “while some markets are performing better than others, the typically stronger spring selling season has not yet materialized,” said Stuart Miller, Lennar’s President and Chief Executive. “These soft market conditions have been exacerbated by the well-publicized problems in the subprime lending market.”

This is actually buyer good news in my opinion!  Product is sitting on the market a little longer and builders had anticipated a strong spring beginning.  It has yet to happen.  Meaning inventory is waiting on possible buyers, and often at fantastic discounts to you!  Unfortunately, Austin is one of those markets that is performing at a resonable level- not too hot, not too cold.  Warm is how I like to describe it, meaning the discounts may not be as deep as in other areas of the country, but nonetheless, great deals are to be found all over Greater Austin.

So if you’re on the fence waiting for the perfect time, I can only tell you that you may want to consider today as that time.  My suspicion is that the spring rush will come, and when it does, the bargins may not be as easy to come by.

As for the subprime effect, remember- this will really only effect a subprime borrower who can expect tightened conditions on their loan and higher expectations on qualifying.  A savvy lender and REALTOR combo can help you navigate the new changes in sub-lending.

Happy Buying!

That Real Estate Guy

Posted by Benn, Single Pointe CEO | Filed Under Austin News, Blog, Buying, Market Conditions 

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