(Reuters) – Homebuilder Lennar Corp on Wednesday beat analysts’ estimates for second-quarter profit, helped by higher home prices as upbeat demand outpaced supply.
Shares of the company rose about 4% in extended trading.
The housing market has been squeezed by the most aggressive rate hikes from U.S. Federal Reserve since the 1980s, aimed at taming inflation. But the worst of the housing market downturn could be over.
Sales of new U.S. single-family homes jumped to a 13-month high in April, boosted by a persistent shortage of previously owned houses on the market and a sharp decline in prices from last year’s lofty levels.
The shortage is pushing buyers keen to take advantage of dips in mortgage rates, keeping builders busy even as the overall housing market remains depressed.
The company reported a profit of $3.01 per share, above average analysts’ estimate of $2.32 per share, according to Refinitiv data.
(Reporting by Kannaki Deka in Bengaluru; Editing by Krishna Chandra Eluri)
