Business

Irvine homebuilders see gains during pandemic

Lennar’s office in the FivePoint Gateway Center at Alton and Barranca / Photo: IrvineIndy.com

By Ann Frances –

Tri Pointe Group, Inc., based in Irvine, and Lennar Corp., with offices in FivePoint’s Gateway Center in Irvine, were both named on nasdaq.com among homebuilders nationally that are thriving amid the economic downturn resulting from the coronavirus pandemic.

In a Sept. 22 Zacks article, writer Shrabana Mukherjee noted the V-shaped recovery being enjoyed by homebuilders responding to buyers are who are seeking homes with more space to accommodate the so-called new normal.  Work-at-home, distance learning, and low-density have emerged as priorities to buyers due to stay-at-home orders by local and state officials seeking to stop the spread of COVID-19.

The National Association of Realtors has reported that existing-home sales rose 25 percent in July, the highest monthly gain since 2006. And the July stats for new-home sales increased nearly 14 percent from June with a gain of 36 percent annually.

First-time home purchases rose 19 percent in August, compared to prior month sales. Freddie Mac reports this is the highest monthly level ever tracked.

Low mortgage rates are fueling the demand, with Freddie Mac reporting 30-year home loans under 3 percent compared to 3.73 percent a year ago.

The Zacks story reports that Miami-based Lennar Corp.’s price performance, is up 161.5 percent in the last six months.

Single-family homebuilder Tri Pointe, with new homes in Irvine’s Great Park Neighborhoods, has raised its current-year earnings estimate 29.4 percent over the last 60 days, according to the Zacks Consensus Estimate. The company’s price performance is up 154.4 percent over the past 6 months.

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