What It Takes to Sell Homes: Lennar Cuts Average Selling Price Below its 2019 Level, and its Home Sales Held Up

Dusty Rhodes • September 22, 2025

But the hot air was let out of pandemic-era gross margins, operating earnings, and net income. Sellers of existing homes should pay attention.


Homebuilder Lennar reported earnings yesterday evening, and along with its conference call today, aired out a litany of lamentations about the housing market: Revenues from homebuilding fell 8.8% year-over-year in Q3, incentives needed to make those deals jumped to 14.3% per home sold, which slashed its gross margin to 17.5% in Q3, from 22.5% a year ago. Operating earnings from homebuilding plunged by 49%, net income plunged by 50%, and earnings per share plunged by 46%.


Gross margins dropped “primarily due to a lower revenue per square foot [lower prices per square foot] and higher land costs,” that were only “partially offset by a decrease in construction costs,” the company said in its filing today.


The entire Pandemic Free-Money price spike got cut: Lennar’s average selling price in Q3 dropped by 9% year-over-year to $383,000, below where it had been in 2019, and by 22% from the price peak in Q3 2022, when FOMO-addled buyers were willing to pay whatever because money was free.

Lennar targets the mass market. It doesn’t target the high end. People who want to spend substantial amounts on a custom-built home will likely choose a different builder. Lennar’s homes are mass-market products, they expand the supply of homes that people can more easily afford, and more supply and lower prices are exactly what this price-ravaged market needs.


From Q3 2019 through the peak in Q3 2022, Lennar jacked up the average price by 25%. Lennar has now given up the entire price spike plus some, and the average price is below where it had been in 2019.


As a result of the much lower average selling prices, sales held up: The company delivered 21,584 homes, which was up a hair from a year ago, and new orders jumped by 12% to 23,000 homes.


That message is lost on sellers of existing single-family homes whose sales plunged by about 25% from 2019 and by over 30% from 2021, because prices are too high, and sellers are loathe to budge. And homebuilders are now eating their lunch.


Hot air comes out of inflated gross margins. Lennar’s lower prices did the trick, kept volume up, and boosted its new orders – but they crushed the inflated gross margins from yesteryear:

  • Q3 2025: 17.5%
  • Q3 2024: 22.5%
  • Q3 2022: 29.2%


That Q3 2022 gross margin of 29.2% was when money was still free, and when money is free, prices don’t matter, and homebuilders went on ahead and cleaned out these FOMO-addled homebuyers, generating huge profits for themselves and massive mortgages for the homebuyers, and a good time was had by all.


But the free money ended, and so there’s this litany of lamentations about “the continued pressures of today’s housing market,” and about the “incentives and price adjustments to match market conditions,” as Lennar said.


Lennar, like all homebuilders, figures the cost of incentives and mortgage-rate buydowns into the average price per home sold. So all of the costs of those incentives are included.


Incentives are not included by the Census Bureau, when it reports on new home sales, and bases its median price on contract prices of deals, and they don’t include the costs of mortgage rate buydowns and many other incentives, and without those costs, the contract prices have dropped far less than actual new home prices and understate the actual price drops.


As per the Census Bureau, the median contract price across the US by all homebuilders dropped by 5.9% year-over-year in July (blue in the chart below), and the three-month average (red) dropped by 1.8% year-over-year and by 5.9% from the peak in late 2022.

Lennar also cut its delivery expectations for Q4 “in order to relieve the pressure on sales and deliveries and help establish a floor on margin,” co-CEO Stuart Miller said during the conference call today (transcript via Seeking Alpha).


“Sales volume was difficult to maintain and required additional incentives in order to achieve our expected pace and to avoid building excess inventory,” he said. Sellers of existing homes should pay attention.




Source: Wolf Street


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When Are You Considered a First-Time Homebuyer Again?

By Dusty Rhodes • October 6, 2025
Buying a home is an exciting time, whether this is your first time purchasing a house or you’re a repeat buyer. But if you’ve owned a home before, you may be wondering if you can be a first-time home buyer again. In some cases, yes, you can. In this Redfin article, we’ll go over what qualifications you need to meet and when you can be considered a first-time homebuyer again. Whether you’re buying a home in Atlanta, GA , or a condo in Portland, OR , read on to find out if you’re eligible to be a first-time homebuyer twice. Key takeaways Usually, you’re a first-time homebuyer again if you haven’t owned a home in 3 years. Some special situations may also qualify you as a first-time buyer. Benefits include down payment and closing cost assistance and lower interest rates. When are you considered a first-time homebuyer again? Typically, you’re considered a first-time homebuyer again if you have not owned a primary residence for at least three years. There are several additional reasons you may qualify as a first-time homebuyer again, which we’ll explore below. Some first-time homebuyer programs have different definitions of “first-time homebuyer,” so check with the specific program before proceeding. Qualifications to be considered a first-time homebuyer There are other reasons you may qualify as a first-time homebuyer twice. Let’s take a look at them: You haven’t owned a primary residence for 3 years: This means if you owned a home, but sold it and rented for 3 (or more) years, you can be considered a first-time home buyer again. If you’re buying with another person, only one of you needs to meet the criteria to use most first-time home buyer programs. You’re a single-parent buying on your own: If you’ve never purchased a home by yourself and are a divorced single-parent, you may qualify again. Even if you purchased a home with your former spouse, you likely still meet the criteria. You’re a displaced homemaker/family caregiver: If you are a displaced homemaker who doesn’t or didn’t earn wages from employment and has only owned a home with a former spouse, you’re likely considered a first-time homebuyer. You previously owned a mobile home: If you owned a mobile home or property not affixed to a foundation, then you likely qualify. Your previous home was out of compliance: If your home had building code violations or safety issues that could not be repaired or brought into compliance for less than the home’s value, you’re likely eligible. Benefits of being a first-time homebuyer again There are benefits to being a first-time homebuyer twice. Let’s take a look at them: Access to first-time homebuyer programs: One of the biggest benefits is the ability to use first-time homebuyer programs such as down payment and closing cost assistance , grants, credits, or loans. Every program has different qualifications, so make sure to research each program or speak with your agent and lender to explore options. Options for low down payment mortgages: There are several loans available for first-time buyers that offer lower down payment amounts. For example, Freddie Mac’s Home Possible and Fannie Mae’s Home Ready offer down payment amounts as low as 3%. Potentially lower mortgage rates: Sometimes, lenders will offer slightly lower mortgage rates to first-time borrowers to help them buy their first home. FAQs about first-time homebuyers Can I be a first-time homebuyer again if I previously owned a home? Yes, as long as you haven’t owned a primary residence in the last 3 years, or you owned a home while previously married. Do both homebuyers need to be first-time homebuyers to qualify? No, in most cases, as long as one homebuyer meets the qualifying criteria, then you’re considered a first-time homebuyer. However, some programs require both homebuyers to be first-timers. Can I qualify for a first-time homebuyer loan again? Yes, for the most part, if you qualify as a “first-time homebuyer,” you can get another first-time homebuyer loan. Every lender and loan is different, so be sure to read the eligibility criteria thoroughly. Are there income limits for programs? Yes, many first-time homebuyer programs have income limits. This means you won’t qualify if you make more than the specified annual amount.

10 Home Renovation Projects Under $1,000 That Add Lasting Value

By Dusty Rhodes • September 29, 2025
Enhancing your living space doesn’t always require a hefty budget. With the right updates, you can add real value to your home for under $1,000. Whether you’re preparing to sell your home in Grand Rapids, MI , or looking for some easy DIY projects for your house in Portland, OR , these cost-effective upgrades can breathe new life into your space. To dig deeper into this topic, we spoke with Kevin Brasler, executive editor at nonprofit Consumers’ Checkbook , a consumer advocacy group that helps homeowners save money and make smart choices. With decades of experience evaluating service providers, Kevin shares insights on how to budget wisely, avoid common renovation mistakes, and know when to hire a professional versus taking the DIY route. 1. Add fresh paint to the walls of your home Painting is one of the most affordable ways to refresh your home. A gallon of quality paint costs $30 to $50, with a full room averaging around $350 . Neutral shades like gray, beige, or white appeal to most buyers, while accent colors such as navy, forest green, or mustard add personality. For a calming vibe, try sage or powder blue. Brasler notes that painting is one of the best DIY-friendly projects homeowners can take on. “Good DIY projects are those that involve mostly labor: painting, basic tile work, installing fixtures that don’t require new wiring or plumbing, landscaping, and most flooring jobs,” he says. 2. Update your cabinet hardware A cabinet hardware update is a subtle yet effective strategy to elevate your home’s functionality and aesthetic appeal. Swapping outdated or generic cabinet handles and knobs for modern, stylish alternatives instantly transforms kitchens and bathrooms. Consider sleek brushed nickel handles for a contemporary touch, or opt for vintage-inspired brass knobs for a timeless charm. This modest investment typically costs between $2 to $10 per piece. 3. Change the kitchen backsplash A new backsplash can quickly refresh your kitchen while protecting your walls. A custom kitchen backsplash protects your walls from daily wear and creates a focal point that elevates the entire room. Opt for affordable ceramic or glass tiles, which can be found for as low as $1 to $5 per square foot. Staying within a $1,000 budget for a standard-sized kitchen is doable with those materials. Or you can go for a peel-and-stick backsplash that is not only budget-friendly, but a quick solution to make your kitchen stand out. Brasler stresses that getting multiple estimates is critical for even small-scale projects like this. “The biggest mistake homeowners make is not getting multiple bids. Even for smaller projects, you should get at least three written estimates; five is better,” he explains. 4. Switch to energy-efficient lighting By making the switch to energy-efficient lighting, you’ll not only improve the sustainability of your home but also create a more comfortable and inviting living environment. Switching to LED bulbs, which typically cost between $2 to $10 each, saves energy and reduces utility bills over time. Beyond the financial benefits, the crisp and vibrant illumination of energy-efficient lighting can effortlessly enhance your home’s overall mood and appeal. 5. Create a beautiful landscape A simple landscaping update is another low-cost project that adds value. Try planting vibrant flowers, shrubs, and trees, which can cost anywhere from $100 to $500, depending on the size and variety. Add mulch or decorative stones to create a polished look for approximately $50 to $150, while adding affordable outdoor lighting options typically range from $50 to $200. Low-maintenance features lower costs down while still making a strong impression. For most landscaping updates, DIY is both practical and cost-effective. Still, Brasler advises calling in professionals for anything involving gas, high-voltage electrical, or structural work. 6. Install a smart thermostat A smart thermostat, such as popular models like Nest or Ecobee, typically costs between $150 to $300, depending on the brand and features. Homeowners can often handle the installation themselves, avoiding additional labor costs. Once installed, these intelligent devices learn your preferences, allowing for automated temperature adjustments, and can be controlled remotely via smartphone apps. 7. Refurbish or paint the front door Refresh your curb appeal by refurbishing or painting the front door – a low-cost project with instant impact. Sanding and restaining often costs under $100 and requires just a few materials. Another choice is to use high-quality exterior paint, which typically ranges from $30 to $50 per gallon, providing a fresh, vibrant color that suits your home’s style. 8. Add floating shelves or built-ins Consider adding floating shelves or built-in storage solutions to maximize space and keep your home organized. Floating shelves, available for as little as $20 to $50 per shelf, provide an affordable and stylish way to showcase decor or organize essentials. For a more customized approach, DIY built-ins can be crafted using plywood or ready-to-assemble shelving units, typically ranging from $100 to $300. 9. Upgrade your kitchen sink and faucet Breathe new life into your kitchen with a sink and faucet upgrade. Faucets usually run $100 to $300, and sinks $200 to $500. Consider a sleek pull-down faucet and a resilient stainless steel or granite composite sink to improve both function and style. Spending $300 to $800 on a sink and faucet upgrade can instantly refresh your kitchen’s look and make daily tasks easier. 10. Add safety measures to protect your home Smart security cameras or a basic surveillance system now offer affordable and effective protection. Investing in a home surveillance system, typically from $200 to $500, allows real-time monitoring and deterrence against potential threats. The addition of smart cameras, with features like motion detection and remote access via smartphone apps, can improve your home’s overall safety and convenience. With a budget-conscious investment of $500 to $1,000, you can create a comprehensive security network covering critical areas of your property. Tips for finding good contractors Even for smaller projects, working with contractors requires careful planning. Brasler emphasizes the value of comparison shopping. “Get proposals and detailed pricing from at least three reputable, licensed contractors,” he advises. “The only way to ensure you’re paying a fair price is to initiate competition.” He also suggests: Check references thoroughly. Ask questions like: Did the company follow plans? Did it finish on time? Was the work professional? Did the contractor offer low-cost solutions and stick to agreed prices? Were problems handled promptly and effectively? Did the team communicate clearly throughout the project? Was disruption to your daily life kept to a minimum? Did the finished results meet your expectations for quality and appearance? Was the contractor flexible and fair about changes if you adjusted plans? Ask neighbors and friends for referrals. Word-of-mouth often uncovers the best local contractors. Look for complaints. Check ratings at Checkbook.org or your local Better Business Bureau and be cautious with online reviews as they can’t always be trusted. Common mistakes when budgeting for small renovations Brasler states the biggest budgeting mistake is skipping multiple bids. “A contractor charging $800 might be using premium materials while the $500 bid uses builder-grade stuff. Try to get prices from each business for the exact same work,” he explains. He also reminds homeowners not to assume that a low price means low quality. “For decades we have evaluated all kinds of businesses and often find some of the best companies have the lowest prices,” he says. When to DIY vs. hire a pro While DIY saves money, Brasler stresses knowing your limits. “Call in pros to deal with anything involving gas, high-voltage electrical, or structural changes. Ditto for work that requires a permit and inspection,” he advises. For tasks like painting, basic landscaping, or adding shelves, homeowners can usually manage on their own. Keep expectations realistic since DIY projects often take longer and may not match professional results. The bottom line Budget-friendly renovations under $1,000 can make a big difference in your home’s look, comfort, and value. From painting and landscaping to updating fixtures and adding smart technology, these projects prove you don’t need to overspend to refresh your space. As Brasler reminds homeowners, “the key is balancing creativity with caution.” By comparing bids, avoiding common budgeting mistakes, and knowing when to call in the pros, you can achieve lasting results without stretching your wallet.

Maximizing Storage in a Two-Bedroom Apartment

By Dusty Rhodes • September 15, 2025
Moving into a two-bedroom apartment often feels like a big upgrade. There’s an extra room, maybe more closet space, maybe even a balcony. But before long, that extra square footage starts to disappear. Boxes stack up, closets overflow, and the second bedroom turns into a catch-all. The truth is, space isn’t just about how much you have. It’s about how well you use it. Why Extra Rooms Fill Up So Quickly Two bedrooms can create a false sense of abundance. One room is for sleeping, the other is supposed to be flexible: an office, a guest room, or storage. But once daily life settles in, that second space often becomes a little of everything and a lot of nothing. A bed covered in laundry, a desk buried under papers, a closet that won’t close. Sound familiar? The challenge isn’t only fitting more in. It’s making sure the things you own feel organized and intentional. Furniture That Works Beyond Its Job One of the most effective ways to save space is to look at furniture differently. A coffee table with a hidden compartment. A bed frame with drawers underneath. A bench at the entryway that opens to store shoes. These aren’t just stylish pieces; they’re practical solutions. Retailers from IKEA to West Elm offer versions that balance design with function. When you think about it, every piece of furniture is either working for you or taking up space. Choosing the right pieces can make the difference between clutter and comfort. Some apartments are already designed to make storage easier. For example, look at these two bedroom apartments in Denver Colorado from Station A. The layouts include open kitchens and spacious bedrooms that give you a little extra breathing room before you even add furniture. Use the Walls, Not Just the Floor Floors fill up fast, but walls often sit empty. Floating shelves, wall-mounted racks, and hooks behind doors all free up ground-level space. Even the space above a doorway can hold a slim shelf for books or baskets. Tall furniture also helps. A floor-to-ceiling bookcase, for example, not only adds storage but also draws the eye upward, giving the room a sense of height and airiness. Making Closets Work Harder Closets look spacious when empty, but once coats, shoes, and bags pile in, they quickly feel cramped. The key is layering. Hanging organizers, stackable bins, and slim shoe racks create levels where there was only one. Vacuum-sealed bags for out-of-season clothing can cut bulky items down to a fraction of their size. Opening a closet and finding everything in its place may sound small, but it changes how you feel about the whole apartment. Hidden Spots You Might Miss Every apartment has underused corners. The space under a sofa, the gap above the kitchen cabinets, the wall space beside a fridge, or even the narrow strip between the washer and dryer. With the right bins, baskets, or rolling carts, these forgotten areas can become useful without making your home look crowded. A Quick Word on Digital Storage Storage isn’t always physical. Old laptops, stacks of paper, and tangled cords take up room just like bulky furniture does. Moving documents online, consolidating devices, and recycling outdated electronics can free up real space while cutting visual clutter. Rotate with the Seasons One of the simplest tricks is seasonal rotation. Think of your apartment like a store changing its displays. Keep only what you need right now in easy reach. In summer, pack away heavy blankets and coats. In winter, box up patio cushions and fans. This way, storage works on a cycle instead of becoming permanent clutter. Keeping Only What You Use It may seem contradictory to talk about maximizing storage and also suggest owning less, but the two go hand in hand. The fewer unnecessary items you keep, the more room you have for what matters. A helpful guideline is the “one-year rule.” If you haven’t used it in a year, it probably doesn’t need to take up space in your apartment. Letting go of items can be surprisingly freeing. That rarely used kitchen gadget, the stack of magazines you meant to read, or the exercise gear gathering dust—they’re not making your apartment feel larger. They’re weighing it down. Final Thoughts Maximizing storage in a two-bedroom apartment isn’t about cramming more into closets or stacking boxes in corners. It’s about making choices that let your home feel organized and functional. Furniture that doubles as storage, walls that carry some of the load, closets with actual systems, and a thoughtful rotation of seasonal items can make a noticeable difference. In the end, a well-organized space feels bigger, calmer, and easier to live in. And that might be the best use of your two bedrooms.