The Miami Herald reported S. Florida home sales stagnant as tax cuts take hold. Reporter Matt Haggman said Miami-Dade single family homes plunged 44% from last May and condo sales were down 46% from last year.
Bad news for our buds at Lennar. The Miami Herald said Lennar reports $244.2M 2nd-quarter loss. In the previous year they posted a $324.70 profit. Hell, this is one sluggish market. Lennar has cut their profit on new homes from 23.7% to 13.6%. In the 2nd quarter Lennar delivered 9,568 homes, down 28% from last year. The average price for a home fell to $298,000.
I am worried about what will happen to CEO Stuart Miller's Compensation package this year...(the compensation package shown here is from Salary.com)
P.S. Whomever took this photo of Stuart Miller should be taking my family portaits. This photographer has talent, love the halo.
4 comments:
It's only going to get worse. Basic 2/1's selling at 300K now, while nice, is still a lot of $$$ when you add in insurance and taxes.
Regular working people who aren't willing to go into debt over a house still can't afford to buy.
Anyone know what the profit margin on new home construction is in south Florida? With market prices soaring in the double digits in the past, Lennar and others must have been making a killing. I wonder if one were to look at net earnings over the last 5 years. I would bet that they are still way ahead as far as profits go.
Key West is seeing similar problems in the condo market. I just posted about
large price drops for listings of condos in Key West
I'll keep an "eye on miami" and add it to my blog roll.
Keep up the good work! It is appreciated.
Your Nearby Neighbor,
Cayo Dave
The market is at a standstill. Everyone in Florida is waiting for tax relief, and everyday in the paper there is some horrendous story:
We will be short on budget by a billion dollars
Schools will take a major hit
The gambling that was suppose to rescue schools is WAY below forecast.
So everyone is waiting and nothing is going to happen.
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