Revenues declined by 61%, deliveries dropped 60% and new orders fell 45%. The average price of a Lennar home fell 8.1% to $274,000 from a year ago and sales incentives rose 11% to $48,700 per house, up from $43,700.

If you didn't think it could get any worse than this, well, you're wrong. The company issued a gloomy outlook, claiming that it expected further deterioration in the housing market.

A few glimmers of hope could be gleaned from the data if you are an optimist. Lennar's cancellation rate was 22%, an improvement from the 29% rate a year earlier.

The backlog of homes under contract and not yet sold did fall 56% to $1.25 billion, indicating that the company was working through its inventory.

I still maintain that the homebuilders are in for a world of hurt with some bankruptcies down the line. While I'm not issuing any downgrades on the stock because I've believed all the homebuilers have been a sell for some time, maybe I can just add it to my conviction list.

Source: Reported By Mock The Market http://mockthemarket.blogspot.com/