DC-area homebuilder sees more buyers getting cold feet

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.

Jeff Clabaugh

Jeff Clabaugh has spent 20 years covering the Washington region's economy and financial markets for WTOP as part of a partnership with the Washington Business Journal, and officially joined the WTOP newsroom staff in January 2016.

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