Lennar, nation's No. 3 builder by revenue, reported its fourth straight quarterly loss and warned that conditions in the housing market continue to worsen due to a glut of homes on the market and ongoing problems in the mortgage market.

Lennar reported a net loss of $88.2 million, or 56 cents a share, in the quarter. The company posted a profit of $68.6 million, or 43 cents a share, in the year-earlier period.

The loss was still better than what analysts had expected. Experts had been looking for a loss of $1.07 a share.

Revenue from home building declined 64% in the period to $953.1 million from $2.6 billion a year ago. The company saw the average sales price of one of its homes fall 8% to $278,000 in the first quarter, partly due to higher sales incentives it needed to offer to maintain demand. The average incentive on one of its homes reached $48,000 in the quarter, up $2,500 from a year earlier.

But what really cut into revenue was a nearly 60% drop in the number of homes delivered to customers to 3,437 from 8,566 a year earlier.

Total revenue, which includes its financing operations, fell 62% to $1.1 billion, which fell 5% short of the forecasts.