Lennar Opens 13 Model Homes On One Street

Original Story: BuilderOnline.com

Most residential builders construct one or two models to showcase what’s possible in a new community, but one of the country’s largest builders is taking model homes to a new level.

Miami-based production builder Lennar, which builds in 44 communities in the Tampa Bay area alone, needed a way to show off its products in one place without requiring customers to drive across several counties to see them. This Custom home builder Tampa instead, division executives decided to locate many of the company’s models in one place, a model home showplace called “Easy Street.”

The company recently debuted not one but two Easy Streets composed of 13 model homes each that will make shopping for a new home ultra-convenient. Located in two of its Tampa Bay, Fla. developments--Stonegate at Ayersworth in Wimauma, and Concord Station in Land O’ Lakes—the model homes found on each Easy Street will showcase the floor plans available in Lennar's nearby communities.

“Prospective home buyers can easily see our newly launched floorplans and walk from model home to model home all in one morning or afternoon,” says Mark Metheny, division president of Lennar Central Florida. “Our goal with Easy Street is to make it convenient so buyers can see all the available floorplans at one location, and then choose the community they want to live in.”

The home builder Tampa based shows the models of Easy Street are available in 13 communities in Florida’s southern Hillsborough and Pasco counties, a widespread area that would normally require miles of driving for a prospective buyer to see each one. That’s why customers appreciate the one-stop shopping experience provided at each Easy Street, says Steve Seeger, director of sales and marketing for Lennar’s Tampa Bay division.

“Our buyers really like the convenience of seeing all the floor plans before making their selection, and being able to see them all in one place,” says Seeger. “Once they pick the floor plan that works for them, then they can pick the community they would like to be in where that floor plan is offered.”

Building 26 model homes was a significant investment, says Seeger, who declined to provide the total expense of the project. “Fortunately Lennar has the resources for this type of project to provide convenience to prospective home buyers,” he says. The company is the second largest home builder in the country as ranked by the recently released Builder 100 list.

Each Lennar division uses a different strategy to showcase new floor plans and reach prospective buyers, says Seeger. The Tampa Bay division is the first to try the Easy Street approach.

The Easy Street homes are part of Lennar’s “Everything’s Included” approach, where all the features are included in the list price of the home. Visitors to Easy Street in the community of Stonegate at Ayersworth can see a wide range of model homes, from a single-story 1,276-square-foot three-bedroom to a 3,327-square-foot two-story six-bedroom.

The model homes at the Concord Station community’s “Easy Street” range from three to five bedrooms and 1,612 square feet to 3,777 square feet. Featuring many of Lennar’s most popular luxury features, these homes are part of the builder’s Legacy Series, with stainless steel appliances, granite countertops, ceramic tile flooring and more.

Home Construction Surge – Continuing Forward

Story first appeared on USA Today

Many homebuilders were forced to drastically scale back construction on new homes during the aftermath of the housing bust, to reduce the risk of being left with multiple newly build but as of yet unsold properties.

But an improving housing market has homebuilders feeling more confident about sales, and that's likely to kick the pace of new construction into a higher gear this year.

The Commerce Department said Thursday that builders broke ground on houses and apartments last month at a seasonally adjusted annual rate of 954,000. That's 12.1% higher than November's annual rate. And it is nearly double the recession low reached in April 2009.

Construction increased last month for both single-family homes and apartments. And the pace in which builders requested permits to start more homes ticked up to a 4½ year high.

For the year, builders started work on 780,000 homes. That's still roughly half of the annual number of starts consistent with healthier markets. But it is an increase of 28.1% from 2011. And it is the most since 2008 — shortly after the housing market began to collapse in late 2006 and 2007.

Steady hiring, record-low mortgage rates and a tight supply of new and previously occupied homes available for sale have helped boost sales and prices in most markets. That has persuaded builders to start more homes, which adds to economic growth and hiring.

David Williams, a homebuilding analyst with Williams Financial Group, says builders are very closely tied to what's happening in the housing market and they're going to build homes to meet demand, but not go overboard.

"I don't think, at this point, that they're going to overbuild," Williams said, noting that homebuilders are still holding back on building too many spec homes, or properties built before they're sold.

Having some spec homes can help sales, especially when a buyer isn't willing to wait several months for their home to be built. Builders tend to put up more of those homes heading into the spring home-selling season that traditionally begins next month.

Larry Webb, CEO of homebuilder The New Home Co., in Aliso Viejo, Calif., says he is building homes at a faster pace than a year ago, but he sticks to a sell-first, build-second approach.

Overall, Webb is selling and building a minimum of four homes a month, at least double the pace of sales and construction two years ago.

Webb believes the stepped-up pace of home construction will continue this year. But he's holding on to the sell-first approach.

"Based on what we've gone through in the last recession and the way we do business, we think we should primarily build after we sell homes," he said. "We only build after we sell."

The company, which builds homes in California, has 10 open communities and plans to open another 14 this year.

"Normally there's a big drop off between Thanksgiving and Christmas," Webb said. "We saw very solid traffic and we're anticipating a very good first quarter."

Thursday's positive housing report, along with a steep decline in unemployment benefit applications, contributed to a strong day on Wall Street. The Standard & Poor's 500 closed at a five-year high.

"There is no denying that the housing market recovery is solidifying, and we expect construction activity to ramp up to the 1 million annualized threshold by the end of this year," said Michael Dolega, an economist with TD Economics, in a note to clients.

Dolega said the gains in home building helped boost construction hiring in December by 30,000 jobs — the most in 15 months. He predicts the construction industry could add half a million jobs in 2013.

In December, the pace of single-family home construction, which makes up two-thirds of the market, increased 8 percent. While that's well below healthy levels, single-family housing starts are now 75 percent higher than the recession low reached in March 2009.

Apartment construction, which is more volatile, surged 23 percent last month. It is now back to pre-recession levels.

Applications for building permits, a sign of future construction, inched up to a rate of 903,000 — the highest level since July 2008.

"The strong rise in single-family starts is a clear indication of builder confidence in the sales outlook," said Pierre Ellis, an economist at Decision Economics, in a note to clients.

Confidence among homebuilders held steady in January at the highest level in nearly seven years. But builders are feeling slightly less optimistic about their prospects for sales over the next six months, according to a survey released Wednesday.

In November, sales of previously occupied homes rose to their highest level in three years, while new-home sales reached a 2 1/2-year high.

Those factors have helped make homebuilders more confident and spurred new home construction. But homebuilders' are still warily watching the current standoff in Washington between President Obama and Congress over several approaching budget deadlines, including the need to boost the nation's $16.4 trillion borrowing limit.

Though new homes represent less than 20 percent of the housing sales market, they have an outsize impact on the economy.   For each home built, there is approximately $90,000 in tax revenue and an average creation of three jobs lasting for at least a year, data from the homebuilder’s association shows.

Homebuilding Goes Up

Story first appeared in the Los Angeles Times.

U.S. builders began work on more homes last month, evidence that the battered housing market is slowly healing.

The Commerce Department said Wednesday that builders broke ground at a seasonally adjusted annual pace of 717,000 homes in April from March. That's 2.6 percent more than March's total, which was revised higher. Construction rose for both single-family homes and apartments.

Building permits, a gauge of future construction, fell last month from a 3 1 / 2 year high to a seasonally adjusted annual rate of 715,000. But that was because of a 23 percent drop in the volatile apartment category. Permits for single-family homes rose almost 2 percent.

Even with the gains, the rate of construction and the level of permits requested remain roughly half the pace considered healthy. But the increase, along with rising builder confidence and stronger job growth, is a hopeful sign that the home market may finally be starting to recover nearly five years after the housing bubble burst.

Builders have grown more confident since last fall, in part because more people have expressed interest in buying a home. In May, builder optimism rose to the highest level in five years, according to the National Association of Home Builders/Wells Fargo builder sentiment index.

Construction Project Management teams for homebuilders have reported improving sales and higher traffic from prospective buyers, the survey showed. A gauge measuring confidence in sales over the next six months also rose to 34 from 31.

Recent job gains have likely made it easier for more Americans to purchase a home. Employers have added 1 million jobs in the past five months. And unemployment has dropped a full percentage point since August, from 9.1 percent to 8.1 percent in April.

Mortgage rates, meanwhile, have fallen to record lows, making home-buying more affordable. Still, many would-be buyers are having difficulty qualifying for home loans or can't afford larger down payments required by banks.

Though new homes represent just 20 percent of the overall home market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in taxes, according to the National Association of Home Builders.

There are some hurdles to a smooth recovery: Builders are struggling to compete with deeply discounted foreclosures and short sales — when lenders allow homes to be sold for less than what's owed on the mortgage.

Another reason sales have fallen is that previously occupied homes have become a better deal than new homes. The median price of a new home is about 30 percent higher than the median price for a re-sale. That's nearly twice the markup typical in a healthy housing market.

Another report found that U.S. factory output increased in April, helped by a gain in auto production. Busier factories have driven stronger hiring this year and helped the economy grow.

The Federal Reserve says factory production rose 0.6 percent in April, erasing a 0.5 percent decline in March.

Half of the April increase reflected a 3.9 percent jump in the production of motor vehicles and parts. That's the fifth consecutive gain at auto plants and the biggest rise since January.

Overall industrial production increased 1.1 percent in April. In addition to the big gain at factories, output at mines and utilities both showed strong gains in April.

Factory output has risen 18.3 percent since it hit a low in June 2009, the month the recession ended.

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