Lawler: More Builder Results - InvestingChannel

Lawler: More Builder Results

From housing economist Tom Lawler:

PulteGroup reported that net home orders in the quarter ended March 31, 2015 totaled 5,139, up 5.7% from the comparable quarter of 2014. The average net order price last quarter was $332,400, up 0.5% from a year ago. Home deliveries last quarter totaled 3,365, down 2.1% from the comparable quarter of 2014, at an average sales price of $323,000, up 1.9% from a year ago. The company’s order backlog at the end of March was 7,624, up 5.9% from last March. Pulte’s net home building margin was 22.7%, compared to 23.8% a year ago.

Meritage Homes reported that net home orders in the quarter ended March 31, 2015 totaled 1,979, up 29.8% from the comparable quarter of 2014. The average net order price last quarter was $396,000, up 8.8% from a year ago. Home deliveries totaled 1,335, up 20.4% from the comparable quarter of 2014, at an average sales price of $387,000, up 5.7% from a year ago. The company’s order backlog at the end of March was 2,758k up 22.0% from last quarter. The company’s gross home building margin last quarter was 18.5%, down from 22.5% a year ago.

M/I Homes reported that net home orders in the quarter ended March 31, 2015 totaled 1,108, up 12.8% from the comparable quarter of 2014. Home deliveries last quarter totaled 717, down 2.0% from the comparable quarter of 2014, at an average sales price of $325,000, up 8.7% from a year ago. The company’s order backlog at the end of March was 1,613, up 5.8% from last March, at an average order price of $358,000, up 9.8% from a year ago. The company’s gross home building margin last quarter was 21.7%, unchanged from a year ago.

The general theme of builder reports so far compared to a year ago are (1) significantly stronger growth in net orders; (2) substantially lower increases in sales prices (with the exception of M/I Homes); and (3) lower gross margins (with the exception of M/I Homes).

Here are some summary stats.

  Net Orders Settlements Average Closing Price
Qtr. Ended: 3/15 3/14 % Chg 3/15 3/14 % Chg 3/15 3/14 % Chg
D.R. Horton 11,135 8,569 29.9% 8,243 6,194 33.1% $281,305 271,230 3.7%
PulteGroup 5,139 4,863 5.7% 3,365 3,436 -2.1% $323,000 317,000 1.9%
NVR 3,926 3,325 18.1% 2,534 2,211 14.6% $371,000 361,400 2.7%
Meritage Homes 1,979 1,525 29.8% 1,335 1,109 20.4% $387,000 366,000 5.7%
M/I Homes 1,108 982 12.8% 717 732 -2.0% $325,000 299,000 8.7%
Total 23,287 19,264 20.9% 16,194 13,682 18.4% $314,652 $306,463 2.7%



Sales per active community for the above five builders combined last quarter were up 17.3% from the comparable quarter of 2014.

 By way of comparison, the YOY increase in net orders for these five builders combined for the quarter ended March 31, 2014 was 0.4%, net orders per community were down 6.2% YOY; and the average sales price was up 10.4% YOY.

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