Homebuilding stock, Lennar Corporation (NYSE:LEN) continues to come out as a winner from the rise of home sales. Lennar Corporation total value of inflow transactions on upticks was $0.74 million, whereas, the total value of outflow trades on downticks was $0.27 million. The total value of the trades done on upticks was $0.54 million. The company has adjusted earnings of $1.21 per share which increased 13 percent year over year driven by joint venture, improved SG&A leverage and other revenue.
According to Reit.com, REITs outperformed the S&P 500 with a cumulative total return of nearly 80 percent while the Fed raised its interest rate target in 2004-2006. “If the overall economy continues to expand, generating job growth and robust consumer spending, the key take-away for real estate investment is that the demand for commercial real estate and the resulting growth of rents could support REIT valuations even through periods of volatile markets.”
Last November, United States home sales were 4.3 percent higher. As homebuilding stocks came out as winners, the improved home sales numbers to were thank for. Just last year, the Commerce Department announced that the sales increased 4.3 percent to a seasonally adjusted annual rate of 490,000 units. October’s sales pace was revised, lowered to 470,000 units from the previously reported 495,000 units.
With the global financial crisis, disruptive change had been brought out with the bursting of the housing bubble, which, as a result, has been through transformation in itself whereby homeownership is pulling back from the approximately 70 percent of households seen at the extreme of the bubble to 63.4 percent in the second quarter of 2015, according to PWC’s 2015 Real Estate Report.
America’s real estate market is filled with many niches, with significant diversity participants in asset types. For investors, it is imperative to keep an eye out for specific trends and conditions which may shape the equity and debt participants in the real estate capital markets for 2016 and beyond.
Lennar Corporation is a real estate company. The Company is a homebuilder, a provider of real estate-related financial services, a commercial real estate investment, investment management and finance company. It operates under Homebuilding Operations, Lennar Financial Services, Rialto and Lennar Multifamily segments. It has grouped its homebuilding activities into five segments: Homebuilding East, Homebuilding Central, Homebuilding West, Homebuilding Southeast Florida and Homebuilding Houston.
Its homebuilding operations include the construction and sale of single-family attached and detached homes. Lennar Financial Services offers residential mortgage loan products to buyers of their homes and others. The Rialto segment is a commercial real estate investment, investment management and finance company. The Lennar Multifamily segment focuses on developing a portfolio of multifamily rental properties in select United States markets. It operates under brand name Lennar.