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Chart: How Many Homes Does NVR Sell?

Sometimes the most important data is the hardest to come by. In this case, I'm referring to historic sales figures from homebuilder NVR (NYSE: NVR  ) , the nation's fourth largest builder by units sold and the proprietor of Ryan Homes, NVHomes, Fox Ridge Homes, and Heartland Homes. As I've noted previously, while this is arguably the single most accurate reflection of a homebuilder's performance, not to mention the overall housing market, a comprehensive data set containing the data is nowhere to be found.

It's for this reason I decided to collect the information and share it in the chart below -- to see similar figures for D.R. HortonPulteGroup, and Lennar, click herehere, and here, respectively. While researching the health of the broader economy, I dug through the quarterly filings of the largest homebuilders. My purpose was to gauge how well the market for new homes had recovered. While the market had struggled to date, the chart below, along with Lennar's stellar earnings yesterday, show that things are on the mend.

Source: Quarterly filings.

As I've noted before, there are two reasons to care about this: First, if you own shares of NVR or another major homebuilder, it goes without saying that the more new homes that are built and sold, the higher that shares in these companies will climb. And second, it's estimated that two to three jobs are created by every home built. As a result, an uptick in this sector could very well trigger a more robust economic recovery overall.

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8/30/2016 10:49 AM
NVR $1676.60 Down -4.15 -0.25%
NVR CAPS Rating: ****