When the Levee Breaks: The Impact of an Influx of Existing Homes on Builder Stock Prices
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 07 2025
0mins
Should l Buy LEN.B?
Source: TipRanks
Current State of the Housing Market: The U.S. housebuilding sector is struggling due to high mortgage rates, decreased consumer confidence, and rising raw material costs, leading to a decline in home prices and increased incentives from builders to stimulate sales.
Builder Performance and Challenges: Major builders like D.R. Horton and Lennar are facing declining revenues and share prices, with many cutting prices and offering incentives to attract buyers amid a challenging market environment.
Impact of Existing Home Sales: The market is seeing a shift as existing homeowners, encouraged by lower mortgage rates, are more likely to sell, which could increase competition for new home builders and potentially pressure their pricing and market share.
Future Outlook: While new home sales are expected to perform well in 2025, the influx of existing homes for sale, driven by both individual sellers and institutional investors, poses a significant challenge for builders in maintaining their market position.
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Analyst Views on LEN.B
Wall Street analysts forecast LEN.B stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LEN.B is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
0 Buy
0 Hold
0 Sell
Current: 106.460
Low
Averages
High
Current: 106.460
Low
Averages
High
About LEN.B
Lennar Corporation is a homebuilder and an originator of residential and commercial mortgage loans. The Company is also a provider of title insurance and closing services, and a developer of multifamily rental properties. The Company's segments include Homebuilding East, Homebuilding Central, Homebuilding Texas, Homebuilding West, Financial Services, Multifamily, and Lennar others. Its Homebuilding segments primarily include the construction and sale of single-family attached and detached homes, as well as the purchase, development and sale of residential land directly and through its unconsolidated entities. The Company's Financial Services segment primarily provides mortgage financing, title and closing services primarily for buyers of its homes, as well as property and casualty insurance. The Company’s Multifamily segment is involved in the development, construction and property management of multifamily rental properties. its Lennar Other segment includes fund investments.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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