NVR met analyst expectations in its fourth quarter 2015 earnings, released yesterday. The Northern Virginia-based builder boasted year-over-year order growth of 14%, a settlement increase of 14%, an increase in net income of 35%, a increase in home building revenue of 17%, and gross margins of 18.9%, compared to 18.1% in the fourth quarter of 2014. Its average sales price of new orders was $383,300, a decrease of 1% when compared with the fourth quarter of 2014.

J.P. Morgan's Michael Rehaut said the company took advantage of a return of first-time buyers:

"Overall, NVR noted that demand was consistent with prior quarters and mostly in-line with its expectations. Additionally, we believe NVR’s sales pace has continued to benefit in 2015 from a greater proportion of first-time buyers, as the company noted that this segment has trended higher recently as part of its mix. Regarding pricing, the company noted that trends remain stable, with the overall environment continuing to not demonstrate any material strength or price appreciation. By region, orders in the Mid-East, Southeast and Mid-Atlantic rose 35%, 29% and 8%, respectively, while the Northeast fell 17%. Lastly, NVR’s cancellation rate of 16% was relatively consistent with 3Q15’s 17% and 4Q14’s 18%."

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