Lennar Posts Higher Q3 Profits

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Lennar Corp has reported third-quarter profits that surpassed Wall Street estimates, driven by an uptick in home deliveries.

The company announced that strong demand for new construction remains robust, fueled by a historically low housing supply and declining mortgage rates. Lennar has been at the forefront of meeting this demand, seeing consistent interest in its developments.

With the popular 30-year fixed mortgage rates dropping to about 6.1%—down from a peak of 8%—more buyers are returning to the market. This resurgence has been beneficial for Lennar, as the company continues to attract homebuyers looking for new builds. This comes after the U.S. Federal Reserve cut interest rates by 50 basis points on Wednesday, raising expectations for further reductions. Stuart Miller, co-CEO of Lennar, expressed optimism, stating, “We fully expect an even stronger demand cycle as rates move lower.”

Despite the positive earnings report, Lennar’s shares fell about 3.6% after hours. The company did note a year-on-year decline in gross margins due to rising land costs. However, Lennar remains confident in its ability to navigate these challenges and continue growing its market share. Looking ahead, Lennar anticipates delivering between 22,500 and 23,000 homes in the fourth quarter, slightly below analysts’ expectations.

This ongoing shortage of existing homes is keeping pressure on the market, as many homeowners are reluctant to sell due to current interest rates. Lennar has capitalized on this trend, delivering over 21,500 homes in Q3, up from just over 18,500 units last year. The company continues to position itself as a leader in new home construction, and Lennar’s ability to meet demand during this period is seen as a significant advantage.

Lennar’s strategy of focusing on regions with high demand and limited housing supply has helped the company maintain its competitive edge. Even as Lennar faces rising land costs, the company’s ability to deliver homes at scale is proving crucial. The combination of Lennar’s robust operations and the easing of mortgage rates has set the company up for continued success in the near future.

Lennar remains a key player in the housing market, and industry analysts are closely watching how Lennar adapts to market conditions in the coming months. Lennar’s future projections, though slightly below expectations, still reflect a strong performance in a challenging environment.

 

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AAR Requests NAR to Consider Flexible Offer

the Alabama Association of REALTORS®, or AAR, is calling on the National Association of REALTORS®, NAR, to decouple its association memberships. AAR members are seeking more flexibility in choosing their affiliations, expressing concerns about the current requirement to join local, state, and national REALTORS®associations.

In a letter sent to NAR CEO Nykia Wright, AAR leaders Jeremy Walker and Senia Johnson highlighted a growing desire among members for greater choice in how they allocate their dues. They noted that this sentiment spans both rural and urban areas and affects REALTORS®from small and large firms alike.

The request comes amid ongoing legal challenges facing NAR regarding its membership structure, including allegations of antitrust violations in a recent lawsuit from Michigan brokers. AAR warns that if changes are not made, frustrated members may seek alternatives to REALTORS®

membership altogether.

NAR, currently reviewing AAR’s request, defends its integrated membership model, emphasizing the benefits of localized resources and a unified advocacy platform. They state that the annual dues contribute to significant wins for Alabama REALTORS®, including key legal victories.

As the 2025 billing cycle approaches, Alabama REALTORS®are urging NAR to act swiftly.

Letter to the National Association of REALTORS® from AAR

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Meghan Markle’s Former Toronto Home Sells for Nearly $1.4M

In celebrity real estate news, Meghan Markle’s former rental home, where she lived while filming “Suits” and dating Prince Harry, has sold for just under $1.4 million. Located in the upscale Seaton Village neighborhood of Toronto, this charming two-story property hit the market in August and quickly found a buyer.

The cozy home features high-end finishes and a stunning renovation, highlighted by a distinctive Tiffany Blue front door. Inside, the bright, modern interior boasts neutral accents and ample natural light. While it may not offer the same privacy as Meghan and Harry’s lavish $14.65 million mansion in Montecito, California, it does provide a unique sense of seclusion with a beautifully landscaped backyard surrounded by high hedges and a fence.

The home also has a special royal connection, as Prince Harry visited frequently at the start of his romance with Meghan. In his memoir, “Spare,” he described how excited she was to introduce him to her life and her beloved dogs.

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