Homebuilder Lennars profit jumps 18% on high prices

(Reuters) -Homebuilder Lennar Corp on Tuesday reported an 18% rise in first-quarter profit as high property prices offset supply snags caused by fewer homes being listed for sale amid a tough economy.

Shares of the company rose 2% to $102.5 after the bell.

Homebuilders benefited from flexible work arrangements during the pandemic driving up demand across the United States in a boost to the margins of companies such as Lennar and D.R. Horton Inc.

However, the industry is now staring at a slowdown as high interest rates have made borrowing more difficult, pushing potential buyers off the market.

Net income attributable to the company rose to $596.5 million, or $2.06 per share, in the quarter ended Feb. 28, from $503.6 million, or $1.69 per share, a year earlier.

Revenue rose about 5% to $6.49 billion.

(Reporting by Priyamvada C and Kannaki Deka in Bengaluru; Editing by Devika Syamnath)