U. S. third-largest homebuilder, Lennar Corp posted a huge loss for the second quarter as sales fell and the company wrote down the value of its assets.

Lennar Corp. posted a loss of $125.2 million, or 76 cents a share for the second quarter, compared with a loss of $120.9 million, or 76 cents a share a year ago.

Earlier, analysts had projected a loss of 70 cents a share.

The loss posted for the second quarter included charges of 38 cents a share related to valuation adjustments and other write-offs, and 27 cents a share on a non-cash deferred tax asset valuation allowance.

As far as revenue is concerned it plunged 21 percent to $891.9 million.

Chief Executive Officer Stuart Miller said, "The housing market experienced an uptick in sales of new homes compared to the first quarter, as more confident homebuyers took advantage of increased affordability."

He further said that rising unemployment, increased foreclosures and tighter credit standards continue to pose threats to the industry.

The benchmark Standard & Poor's Supercomposite Homebuilding Index plunged 5.2 percent this year through yesterday. Lennar shares dropped 9.8 percent.

The figures compiled by the company revealed new home deliveries plunged 16 percent, while the average sales price of homes delivered plunged 8 percent during the quarter.

Analysts Anna Torma and Min Zhang of Soleil Securities Group Inc. do not expect the industry to stabilize until late 2009.

In the recent trading shares of the company closed at $7.82 on the New York Stock Exchange.