Lennar Corp. (NYSE: LEN) is quietly entering Iowa’s Des Moines-area housing market.
According to a Business Record report, the Miami-headquartered homebuilder created a Lennar Iowa Facebook page that heralded the upcoming arrival of “move-in ready homes” at prices beginning in the $300,000 range. The Facebook page linked to a Lennar website featuring the announcement “We’re Coming, Des Moines.” However, there is no further information on where the homes will be built or when construction begins and occupancy occurs.
“We are very excited about being part of the Des Moines market,” said Bill Burgess, Lennar’s Midwest regional president, in an emailed statement. “We are under contract on several locations in the Des Moines area and anticipate starting construction in the next few months and being open for sale by late summer.”
Burgess added Lennar Mortgage, the company’s lending division, will also enter the Des Moines-area market with the goal of offering “competitive mortgage rates” to prospective buyers.
Cara Lavendar, senior research manager, for-sale, at John Burns Research & Consulting, predicted Lennar will focus on first-time Des Moines-area buyers.
“We know that Lennar will come in with an entry-level product, and because they have that national scale and capital capacity to offer very enticing rate buy down incentives that will help that entry-level, monthly payment strapped buyer,” Lavendar said. “These national builders have the ability to offer really good buy downs. That’s good for the entry-level buyer but if you’re a resale seller, you can’t offer that. I think resale sellers will feel some of the pain with listings staying on the market longer and pressure to lower their pricing.”
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