No kidding.

It was not giddy, but there were some data points that indicated that a bottom may have been reached and that a turn may be at hand. We certainly got that "glimmer of hope" that Robert Toll of Toll Brothers (TOL - commentary - Cramer's Take) was talking about.

Lennar's balance sheet is in fine shape, and it appears that impairments may be slowing down or perhaps ending. The company works off its inventories in a smoother basis than Hovnanian (HOV - commentary - Cramer's Take), which had a tough first quarter because of the front-loading of sales in the fourth quarter when it ran its big sales.

Lennar reported a first quarter loss of 56 cents per share, which includes 38 cents in charges related to writedowns and impairments. Revenue for the quarter was $1.1 billion.

Some other homebuilding metrics include the following:

• deliveries of 3.596 homes (down 60% year over year);
• new home orders of 3,045 homes (down 57% year over year);
• backlogs of $1.2 billion (down 67%);
• and cancellation rate of 26%.

• "The only real bright spot today is that, when the news has become particularly dire and has been confirmed in some way, the government and other market forces have acted quickly and decisively. And while we might argue or suggest that actions are late, they do nonetheless suggest that there is a floor out there where enough negative news confirmed will result in enough action to bring on sustainable stabilization, and it seems that we are now nearing that point of confirmation."
• After noting the improvement in margins, Miller added that the company expects it "will see, in coming quarters, a stabilization and hopefully improvement in margins that begin to mark trends."
• Standing inventory levels are extremely low. Current new construction costs are defining the cost structure of most deliveries, particularly as Lennar enters the third quarter.
• The balance sheet has been fortified, and Lennar has a substantial cash position.
• Lennar has done the heavy lifting on impairments and is now situated with assets that can and will produce improving markets when the rate of decline and market pricing subsides. Miller believes that, even with continued degradation of market conditions, the stated asset base will not suffer nearly the level of impairment that Lennar has taken to date.