View Mobile Site
 

Ask the Expert

Signal Photos

 

A celebration of new developments

Despite a challenging market, Lennar achieved five consecutive profitable quarters

Posted: August 7, 2011 1:30 a.m.
Updated: August 7, 2011 1:30 a.m.

The Aria at West Creek homes, pictured, are sold with a home-automation system by Schlage, allowing homebuyers to remotely control the home’s electronic and security systems from anywhere. This system includes the ability to manage wireless locks, lighting, thermostats and even cameras.

 

Lennar’s latest home development, Aria at West Creek in Valencia, was part of the celebration last week when Newhall Land handed out prizes and brought in 10 gourmet-food trucks to people touring two new home developments.

The festivities marked the new housing communities of KB Homes gated community, Milan at West Hills, and Lennar’s Aria at West Creek homes.

The new Lennar homes include solar systems and green features designed to reduce energy bills.

Some of the features include low-energy dual-pane vinyl windows, radiant-barrier roof sheeting, drought-tolerant landscaping and a “cool roof” system.

The cool roof is a system of rating roofs based on the ability of the roof to reflect solar energy and radiate heat away from the roof.

Aria at West Creek homes also are sold with a home automation system by Schlage, allowing homebuyers to remotely control the home’s electronic and security systems from anywhere.

The Schlage system includes the ability to manage wireless locks, lighting, thermostats and even cameras.

“Interest has been running extremely high,” said Tara Conklin, vice president of sales and marketing for Lennar Inland/Los Angeles.

Challenging market
Homebuilders are still operating in a challenging market, Stuart Miller, CEO of Lennar Corp., reported in the company’s second quarter 2011 report.

Lennar saw very little evidence of a spring selling season, Miller said. New-home orders for the quarter were flat with the same period in 2010.

The company marked an increase in March and April 2010 home sales due to the federal tax credit extended to new homebuyers however, so it was competing against a period of time with incentives in the marketplace.

New-home orders at Lennar were up more than 30 percent in the month of May 2011, after new orders had declined nearly 11 percent in the prior two months, Miller said.

Results
Despite the hurdles, Lennar reported it was still able to achieve strong results. Second quarter 2011 marked the fifth consecutive quarter of profitability for the company.

“Given that the housing stimulus tax credit was eliminated in May 2010, we should experience favorable year-over-year comparisons going forward,” Miller said.

Lennar delivered 2,682 finished homes in the second quarter 2011, up 39 percent from first quarter and down 8 percent from second quarter 2010.

New-home orders of 3,204 homes were up 41 percent in the second quarter over the first quarter, and flat with the second quarter 2010.

Lennar had a backlog of 2,470 homes in the second quarter, up 27 percent from the first quarter and down only 1 percent from the second quarter 2010.

Second quarter 2011 net earnings for Lennar $13.8 million, compared to $39.7 million in second quarter of 2010.

School district
Lennar’s latest new-home community in Valencia is located in the Saugus Union School District, which includes the elementary school West Creek Academy.

As with the KB Homes, homebuyers’ children will have access to West Creek’s music and performing arts school that offers a unique educational program including a foreign language program.

Priced from the upper $300,000s, the new homes run from 1,782 to 2,343 square feet in floor space. The communities  offer three- and four-bedroom models that include up to three bathrooms.

The Aria at West Creek homes are located at 28298 N. Via Sonata Drive in Valencia.

Comments

Commenting not available.
Commenting is not available.

 
 

Powered By
Morris Technology
Please wait ...