This Homebuilder's Average Selling Price Just Hit a 9-Year Low. Here's Why That's Great News for Home Depot
Key takeaways
- LEN HD NVDA Lennar (NYSE: LEN) saw fiscal second-quarter home deliveries increase 2% to 20,519.
- However, while that suggests a tough economy, making homes more affordable should carry over to existing homes and boost unit sales across the board.
- In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.
LEN HD NVDA Lennar (NYSE: LEN) saw fiscal second-quarter home deliveries increase 2% to 20,519. However, the homebuilder reported a lower average sales price of $371,000, including nearly 13% in incentives and base-price "adjustments" designed to boost demand amid affordability issues. It s the lowest price reported in several years. The results were for the period ended March 31.
However, while that suggests a tough economy, making homes more affordable should carry over to existing homes and boost unit sales across the board. In May, the National Association of Realtors Housing Affordability Index registered 105.6, an improvement from 97.5 in the year-ago period (higher numbers indicate greater affordability). The index measures the affordability of existing home sales.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »