Reston, Virginia-based homebuilder NVR Inc. — with several active residential communities in Maryland and Northern Virginia — reports an increase in buyer cancellations and a drop in new home sales in its latest quarter.
NVR’s cancellation rate rose from 10% in the fourth quarter of 2021 to 18% in the final quarter of 2022. Buyer orders for newly-built homes decreased by 27% compared to a year earlier.
The average sale price for a new home NVR sold in the fourth quarter was $459,000, up 1% from a year ago.
Even so, NVR’s homebuilding revenue of $2.67 billion in the fourth quarter was up 23% from a year earlier, and its gross profit margin rose to 25.3%. NVR had fourth quarter net income of $454.8 million, up 36% from the fourth quarter of 2021.
For all of 2022, NVR reports homebuilding revenue of $10.33 billion, up 19% from 2021.
NVR also operates a mortgage lending business. Closed loan production in the fourth quarter totaled $1.52 billion, an increase of 3% from a year earlier.
NVR builds homes under the brands Ryan Homes, NVHomes and Heartland Homes. In addition to the D.C. region, it builds homes in a total of 35 metropolitan areas in 15 states. The company was founded in 1980 by Dwight Schar, who was a minority owner of what is now the Washington Commanders from 2003 to 2021.
