Photo: Bob Levey, Photographer
Houston’s largest homebuilder said sales incentives were up and orders for new homes were down in this area during the first quarter, a result of the region’s weakening economy.
Miami-based Lennar Corp. reported a 3.5 percent decline in new home orders here with sales incentives averaging $33,800 per home, compared to $22,400 a year earlier, the publicly traded builder said in a quarterly report filed Wednesday. Lennar’s first quarter ended Feb. 29.
For years, Lennar/Village Builders has sold more homes in the Houston area than its competition. Last year it had an 8.2 percent market share according to the Chronicle 100 survey of Houston’s most active builders.
Revenue from home sales was up 25 percent in the first quarter to $1.8 billion from $1.4 billion in the same period a year earlier.
Lennar breaks out its homebuilding activities into four segments nationally: East, Central, West and Houston.
Home deliveries increased among all its homebuilding segments except Houston, primarily due to less demand “driven by volatility in the energy sector,” the company said.
Home sales revenue in its Houston region was up during the quarter as a result of an increase in the average sales price of homes delivered. Earnings, however, fell 24 percent.