(Reuters) – U.S. homebuilder NVR (NYSE:) 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.