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

NVR

23/04/2024 15:18

April 23 (Reuters) - U.S. homebuilder NVR Inc  NVR.N 
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)
 ((ananta.agarwal@thomsonreuters.com))