NVR posts Q3 revenue increase
Reston, Va.-based home builder NVR reported net income for its third quarter ended Sept. 30 of $43.4 million, down 1% from the third quarter of 2010. Consolidated revenues for the quarter totaled $707.5 million, up 5% from $676.2 million in the comparable 2010 quarter.
Net income for the first nine months ended Sept. 30 totaled $97 million, down 34% compared with the first nine months of 2010. Consolidated revenues for the nine-month period were $1.9 billion, down 14% from $2.2 billion in the year-ago period.
New orders in the third quarter increased 3% to 2,218 units, compared with 2,151 units in the third quarter of 2010. The cancellation rate in the third quarter of 2011 was 15%, compared with 17.9% in the third quarter of 2010 and 12.5% in the second quarter of 2011.
NVR’s home-building unit sells and builds homes under the Ryan Homes, NVHomes, Rymarc Homes and Fox Ridge Homes trade names.
Johns Manville builds support for the SAVE Act
Denver-based Johns Manville joined U.S. Senators Michael Bennet and Johnny Isakson in Washington, D.C., to applaud the introduction of the Sensible Accounting to Value Energy (SAVE) Act, a bipartisan bill aimed at encouraging greater investment in insulation and other forms of home energy efficiency.
“On behalf of the thousands of Coloradans whose jobs depend on vibrant insulation and energy efficiency industries, JM would like to salute Senators Bennet and Isakson for their leadership on this bill,” said Todd Raba, CEO of Johns Manville. “Incorporating energy-efficiency calculations into federal mortgage underwriting is a smart and budget-neutral way of creating real jobs and stimulating widespread economic activity.”
The Bennet-Isakson SAVE Act would direct federal mortgage agencies and the Department of Housing and Urban Development (HUD) to create a new mortgage underwriting and realty appraisal process that reflects actual homeowner energy costs, thereby stimulating greater demand for energy-efficient homes. The market-driven proposal is designed to promote cost-effective investments in home energy efficiency, while strengthening federally insured mortgages and creating as many as 83,000 jobs nationally in the construction, manufacturing and home renovation sectors.
According to statistics supplied by Johns Manville, the average homeowner spends more than $2,000 each year on energy costs — more than on either real estate taxes or home insurance, both of which are regularly considered during mortgage underwriting. The SAVE Act would give loan agencies a more complete picture of the costs of home-ownership and borrower’s capacity to service debt.
NAHB weighs in on housing-starts jump
Responding to the Commerce Department’s September housing starts data — up 15% from August — the National Association of Home Builders (NAHB) said tight lending conditions continue to depress the market.
Nationwide housing starts rose 15% to a seasonally adjusted annual rate of 658,000 units in September, the strongest pace of residential construction since April 2010.
"Today’s numbers are very welcome evidence that builders are putting some crews back to work on single-family homes in select markets where economic conditions are improving, and on multi-family homes in places where demand for rentals is on the rise," said Bob Nielsen, chairman of the NAHB and a home builder from Reno, Nev. "That said, extremely tight lending conditions for both building and buying new homes, along with stubbornly high foreclosures that are putting downward pressure on home prices, continue to weigh down new construction and corresponding job growth."
The gain was largely attributed to a sharp increase on the multi-family side, which has been trending upward due to increased demand for rental apartments.
"The big gain in multi-family housing production for September was in the wake of a below-trend number in August and in keeping with characteristic volatility in that sector," said NAHB chief economist David Crowe. "However, there’s no doubt that demand for apartments is rising, as restrictive mortgage lending policies and concerns about future employment push consumers to pursue rental options."