Chart: How Many Homes Does NVR Sell?

Updated

Sometimes the most important data is the hardest to come by. In this case, I'm referring to historic sales figures from homebuilder 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. Horton, PulteGroup, and Lennar, click here, here, 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.

Discover the "only big bank built to last"
Many investors are scared about investing in big banking stocks after the crash, but the sector has one notable stand-out. In a sea of mismanaged and dangerous peers, it rises above as "The Only Big Bank Built to Last." You can uncover the top pick that Warren Buffett loves in The Motley Fool's new report. It's free, so click here to access it now.

The article Chart: How Many Homes Does NVR Sell? originally appeared on Fool.com.

John Maxfield has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement