Lower prices and incentives aim to counter affordability pressures, potentially boosting home sales and Home Depot’s renovation demand.
Lennar reported a 2% increase in fiscal second-quarter home deliveries to 20,519 units, but its average selling price fell to $371,000, the lowest in nine years. The decline includes nearly 13% in incentives and price adjustments to stimulate demand amid affordability challenges.
The National Association of Realtors’ Housing Affordability Index rose to 105.6 in May from 97.5 a year earlier, signaling improved affordability. Lower prices may drive existing home sales, benefiting home improvement retailers like Home Depot, which saw tepid same-store sales growth of 0.4% in its fiscal first quarter.
Analysts suggest increased home sales could spur renovation projects, though timing remains uncertain. Home Depot’s flat global sales underscore the sector’s struggles with sluggish demand for major upgrades.