Builder Warns Of Significant Orlando Real Estate Market Softening

Builder Warns Of Significant Orlando Real Estate Market Softening

Lennar: Orlando experiences 'significant softening' in home demand The metro recorded 1,973 residential construction starts in October, down 36.7% from 3,117 in October 2021. Even as Lennar had to lower prices and offer incentives, construction costs remained elevated. The higher interest rate environmental and extremely difficult capital markets for construction loans will reduce nationwide construction of both single-family homes and rental projects. In one sign of the correction, Lennar reported a 26% home sales cancellation rate in the fiscal fourth quarter. Many homebuyers who were depending on mortgages were stung by the interest rate increases making those loans more expensive. "We've been very fortunate to have limited unsold inventory in those markets so we should be able to get these markets back on track in the first quarter," Beckwitt said.