NVR, Inc. reported net income of $429.3 million, or $130.50 per diluted share, for its third quarter ended September 30, 2024. This represents a 1% decrease in net income but a 4% increase in diluted earnings per share compared to the same period in 2023. Consolidated revenues for the quarter increased by 6% to $2.73 billion from $2.57 billion in the prior year.
Homebuilding new orders increased by 19% to 5,650 units, while settlements rose by 5% to 5,908 units. The average sales price of new orders decreased by 1% to $450,700, and the cancellation rate increased to 15% from 14% in the third quarter of 2023. The backlog of homes sold but not settled grew by 9% in units to 11,339 and by 11% in dollar value to $5.32 billion.
The homebuilding gross profit margin decreased to 23.4% from 24.3% in the third quarter of 2023, primarily due to higher lot costs and closing cost assistance. Mortgage banking income before tax decreased by 9% to $34.9 million, attributed to a decrease in secondary marketing gains on sales of loans. The effective tax rate for the quarter was 20.3%, up from 19.7% in the prior year.
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