Lennar's report “was much better than we expected,” McCanless told CNBC. “They are in the right areas and poised for growth.”
McCanless said Lennar is reducing the amount of discounts offered per home, and expanding into areas where there is larger new demand for housing.
Even though approximately 40 to 50 percent of Lennar’s deals were fueled by the government incentive for first-time buyers, McCanless said the firm's growth should be sustainable.
“The tax credit runs forward and we’re assuming the employment growth should continue the gains on through the rest of 2010,” he said.
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More Market Analysis:
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CNBC.com Slideshow:
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CNBC Data Pages:
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Lennar's Competitors:
D.R. Horton
KB Home
Pulte Homes
Toll Bros.
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Disclosures:
McCanless does not own shares of Lennar.
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Disclaimer