NVR Inc. benefited from positive 2024 homebuilder trends, posting profits for both the fourth quarter and full year, with significant growth in its mortgage arm.
The Reston, Virginia-based parent company recorded fourth-quarter net income of $457.4 million across its business, equal to $139.93 per diluted share. Profits grew 6.5% from the third quarter’s $429.3 million and 11.5% from $410 million a year earlier.
The bottom line increased for the fourth straight quarter, leading to a full-year profit of $1.68 billion, which was up 5.6% from $1.59 billion at the close of 2023. Total consolidated revenue added up to $10.5 billion in 2024, increasing from $9.5 billion a year earlier.
Construction and mortgage lending units of NVR, the parent company to homebuilders Ryan Homes, NVHomes and Heartland Homes, both ended the quarter in the black.
Homebuilding profits grew from the prior quarter despite fewer orders. The segment recorded $526.7 million in profit, compared to $503.7 in the third quarter and $454.3 over the final three months of 2024, jumping 4.6% and 15.9%, respectively.
The number of orders in the most recent quarter totaled 4,794, down from 5,650 on a quarterly basis and 5,190 annually. For all of 2024, NVR reported higher numbers with 22,560 orders compared to 21,729 for full-year 2023.
Average price of new orders came in at $469,000, reflecting broader housing cost trends that have consistently risen over the past year. The latest price grew from $450,700 in the third quarter.
Meanwhile the mortgage banking unit at NVR saw quarterly profits leap to $45.5 million, up by 31.5% from $34.9 million during the previous three-month period. On a year-over-year basis, mortgage lending profits jumped by an even wider margin of 54.5% from $29.7 million. The company attributed the increase to gains in secondary market sales of its loans.
Elevated loan activity also contributed to the segment’s growth. Loan production in the fourth quarter rose 2.4% to $1.7 billion from $1.66 billion at the end of the third. The latest number was up 13.3% from $1.5 billion a year earlier. Full-year closed loan volume totaled $6.26 billion.
The latest positive news for NVR, which operates in 16 states, comes as sales for new single-family properties continues to outperform the existing-home market. The national inventory crunch has led consumers to look toward the new-home market, which has seen buying activity up for almost two straight years.
Construction sentiment, likewise, has risen with the National Association of Home Builders monthly gauge hitting a nine-month high in January. Builders, though, expressed growing worry over expected increased financing and building costs.
