US homebuilder NVR tops profit estimates as tight housing supply spurs sales

By Thomson Reuters Apr 23, 2024 | 9:21 AM

(Reuters) – U.S. homebuilder NVR Inc beat Wall Street estimates for first-quarter profit as tight housing supply drove demand for new homes.

With the popular 30-year fixed mortgage at around 7%, a majority of U.S. homeowners have deferred reselling their homes as they remain locked in mortgages below 5%.

This has created a shortage of existing homes in the market, with new buyers having little choice but to turn to newly constructed homes.

NVR posted first-quarter consolidated revenue of $2.33 billion beating analysts’ estimates of $2.22 billion, according to LSEG data.

New orders for the company, which operates in 15 U.S. states, rose 3% to 6,049 homes. The average selling price per home rose 3% to $454,300.

Net income attributable to the company was $116.41 per share, above estimates of $103.90.

(Reporting by Ananta Agarwal in Bengaluru)