The surge in residential real estate has been one of the unexpected themes of 2020. Homebuilders have been posting strong results in the process, as millennials increasingly turn to remote work and ditch city centers for suburbs. One such homebuilder, Lennar, reported strong profits in Q4 as activity remained robust and as interest rates continue to anchor to record lows.
The question for investors is, will this housing strength continue? Or has the pandemic-induced wave of new homebuyers run its course, only to give way to softer activity in 2021? A.I.dvisor has some insight, with the analysis below comparing Lennar Corp., PulteGroup, and Toll Brothers.
he homebuilder reported higher profit in the fiscal fourth quarter as demand for homeownership remains elevated due to lower borrowing costs and the pandemic.According to our system of comparison, LEN is a better buy in the short-term than PHM and TOL.