While there has been much talk of doom and gloom in the housing market the last few years, at least one company is showing a profit. This could be a sign that things are quickly on the way to getting better. For the first time in nearly two years, homebuilder Lennar Corp posted profits in Q4 2009. While experts are cautiously optimistic, this news, coupled with announcements that 2010 looks even better for the company, has people starting to wonder if things are about to change.
Words like “normalized” are being tossed around when talking about the housing market. In the United States, this is a good thing. While the last few years have been rough to say the least, the fact that Lennar Corporation posted profits is a sign that things are turning around. Furthermore, when a national home builder publicly talks about probable improvement in 2010 and beyond, then you know something could be happening. While many who would love to just say the recession is over and that the housing market corrected itself, for some it’s all about the numbers.
The numbers look strong. Lennar Corp improved from a $811 million loss in Q4 2008, to $35.6 million in profits in Q4 2009. With federal tax credits available, buyers jumped into the housing market in force during the last quarter of 2009. Those federal tax credits, when combined with low interest rates and real estate prices, may have helped to jump start the housing market. If Lennar Corp is any indication, things are definitely looking brighter in 2010. That said, there is still a long way to go, even according to executives at Lennar.
Still, the ingredients are all in place for the real estate market to really start taking off in the right direction – this time a little more responsibly. While location is everything when it comes to real estate, timing has quite a bit to do with your potential profit when you sell. The wise investor watches the market like a hawk and takes in as much information as possible. Beyond the basics, being able to watch economic indicators like Lennar’s profitability, and know that recovery is just around the corner is important if you want to be successful in real estate in 2010. In a volatile market, timing is everything, and it appears that times are changing.
Eric Bramlett is the broker & co-owner of One Source Realty, a boutique Austin real estate brokerage. Eric specializes in Steiner Ranch real estate and downtown Austin real estate.
Brian Kinkade is a broker and team lead with Cherry Creek Professionals Realty, a full service 
Its great news that at last we are back into progression after the great recession. Its good to know that at least the home builders are giving some positive news about their future projects and the prospects of growth. I hope this healthy trend continues.
With all of the recent issues that so many builders have had, it’s a hopeful sign that the housing market is starting to rebound and head in the right direction.