Zillow predicts housing price contraction for 2025

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More news - Lennar just reported new home selling price has dropped 8.7% from a year ago.

"But the average sales price dropped 8.7% to $389,000 per home, below the FactSet consensus of $393,510 per home, and the lowest price seen since the quarter that ended in May 2020."


https://www.marketwatch.com/story/l...-year-lows-but-theyre-still-too-high-a7dc01f1

 

[GON]

More news - Lennar just reported new home selling price has dropped 8.7% from a year ago.

"But the average sales price dropped 8.7% to $389,000 per home, below the FactSet consensus of $393,510 per home, and the lowest price seen since the quarter that ended in May 2020."


https://www.marketwatch.com/story/l...-year-lows-but-theyre-still-too-high-a7dc01f1

Lots missing from the article. What is the Lennar selling price per square foot last year to this year per subdivision would be a beneficial comparison. Lennar's gross profit percentage per home remains similar to prior years, so this implies Lennar is not having to reduce prices to sell homes. Lots of other factors like location, did Lennar open new subdivisions in Arkansas and like low cost land states this year?

 

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Lots missing from the article. What is the Lennar selling price per square foot last year to this year per subdivision would be a beneficial comparison. Lennar's gross profit percentage per home remains similar to prior years, so this implies Lennar is not having to reduce prices to sell homes. Lots of other factors like location, did Lennar open new subdivisions in Arkansas and like low cost land states this year?

I am not sure we’re reading same article. There margin dropped a ton.

“Gross margin on home sales was 17.8%, down from 18.7% in the previous quarter and 22.6% a year ago.”

The stock sold off. So those that track these things as a profession didn’t like it.

I have always said all housing markets are local.

 

[GON]

I am not sure we’re reading same article. There margin dropped a ton.

“Gross margin on home sales was 17.8%, down from 18.7% in the previous quarter and 22.6% a year ago.”

The stock sold off. So those that track these things as a profession didn’t like it.

I have always said all housing markets are local.

My error, I misread the margin drop to be 17.8%, down from 18.7% annually, not quarterly. Thanks for catching my error.

 

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I guess once you click on one article they feed you more

"52% of prospective homebuyers are optimistic about the state of the homebuying market, saying it’s better now than it was a year ago. Three out of four (75%) expect home prices and interest rates to fall and are waiting until then to buy a new home, up from 62% in 2023."
https://newsroom.bankofamerica.com/...owners-and-prospective-buyers-uncertain-.html

 

[zzyzzx]

https://finance.yahoo.com/news/falling-rents-could-good-news-145527021.html

Falling Rents Could Be Good News for Inflation​