Dream Finders Homes continued its positive momentum through the second quarter of 2023, delivering 19% revenue growth year over year and quarterly record levels of pre-tax income and profits per share, $96 million and $0.70 per share, respectively.
“In the second quarter, we experienced an encouraging increase in net sales sequentially and over the prior-year quarter. We continue to focus on managing construction times and increasing inventory turnover,” Dream Finders Homes chairman and CEO Patrick Zalupski said. “The ongoing housing supply shortage, coupled with increased demand as the housing market continues to normalize, has resulted in better-than-expected sales activity and operating results across our segments.”
Home building revenues grew to $943 million in the second quarter for Dream Finders Homes, and closings increased 12% year over year to 1,846 homes. The average sales price of homes closed in the quarter for the builder increased 9% to $504,683. Additionally, the home builder reported its active community count increased 8% year over year to 220.
Net new orders in the second quarter increased 16% from the prior-year period to 1,655 homes, and Dream Finders Homes’ cancellation rate improved 540 basis points year over year to 15.6%. The company said the improvement in net new orders and cancellation rate “are reflective of our successful sales incentives and availability of quick move-in homes in our communities.”
“Although uncertainty remains for 2023, we have set ourselves up for another successful year and have increased guidance to approximately 6,500 closings for the fiscal calendar year,” Zalupski said.
As of June 30, Dream Finders Homes had a backlog of 5,288 homes, valued at $2.5 billion, compared with 5,479 homes valued at $2.5 billion at the end of the first quarter. The average sales price of homes in backlog was $470,192.