This home-selling season is going to disappoint investors relative to expectations, said Buck Horne, housing and real estate analyst at Raymond James.
“We’re on the sidelines right now in terms of the homebuilders and we’re neutral on Lennar [stock] right now,” Horne told CNBC.
Lennar posted a drop in quarterly orders and revenue Tuesday, signaling continued weakness in the housing market.
“Sales are still sluggish and we’re still seeing the incentive levels that were in place about six months ago in the numbers right now,” said Horne.
“Orders were down 12 percent and management commented that spring selling season remains very sluggish.”
Scorecard—What He Said:
- Horne's Previous Appearance on CNBC (Feb. 16, 2011)
More Market Intelligence:
- Mortgage Reform Storm Is Brewing
- Why Housing Is Going Through a Double Dip
- Is Housing Really in Recovery?
CNBC Data Pages:
Horne does not own shares of LEN.
Raymond James expects to receive or intends to seek compensation for investment banking services from Lennar in the next three months.