M.D.C. Holdings (NYSE: MDC) announced preliminary information regarding its Richmond American Homes net new home order activity in 2019 prior to its planned report to an investor conference this week.
For the first two months of 2019, net new home orders increased 1% year-over-year to 1,122, compared with 1,110 for the same period in 2018. The slight increase was driven by a 15% improvement in the average number of active subdivisions to 173, offset by a 12% decline in the monthly sales absorption rate to 3.25.
Robert N. Martin, MDC's senior VP and CFO, stated, "We are encouraged by the start to our spring selling season. As anticipated, our sales absorption rate decreased from the robust level experienced last year. However, that decrease was counteracted by a strong acceleration in our active community count, which has been increasingly focused on our more affordable home collections."