Following strong results in the fiscal third quarter, LGI Homes updated its full year guidance, now targeting home closings for 2024 between 6,100 and 6,400 homes.

In the third quarter, home sales revenues increased 5.6% year over year to $651.9 million, while home closings increased 0.3% to 1,757 homes. The average sales price (ASP) for homes closed increased 5.2% to a record-level $371,004 in the quarter. LGI Homes said the increase in ASP was partially due to a larger number of closings in higher-priced markets in the West and Northwest.

“Our strong third quarter financial results reflect our focus on operational excellence and a commitment to maximize our profitability,” Eric Lipar, chairman and CEO, said. “While the industry continues to face near-term headwinds, the broader fundamentals of the housing market remain solid, and the appeal of homeownership endures. During this dynamic period, we remain committed to investing in the long-term growth of our business and delivering profitability-focused results for our shareholders.”

LGI Homes’ top-performing markets on a closings per community basis in the third quarter were Las Vegas (9.9 closings per community per month); Nashville, Tennessee (9); Charlotte, North Carolina (8.9); Dallas-Fort Worth (6.4); and Tampa, Florida (6.4).

LGI Homes generated 1,452 net orders in the third quarter with a cancellation rate of 26.2%. The builder started 1,554 homes in the period and ended the third quarter with 1,977 homes in progress. At quarter’s end, LGI Homes’ backlog was 1,088 homes, representing a value of $417.8 million.

The company generated profit of $69.6 million, an increase of 3.8% on a year-over-year basis. Profits per share in the third quarter was $2.95.

The No. 15 company on the Builder 100 list is also on pace to achieve its lofty target of 150 active communities by year end following a 30.2% year-over-year increase in community count in the third quarter. At quarter’s end, LGI Homes had a land portfolio of 68,564 owned and controlled lots, of which 78.8% were owned. Of the builder’s 54,029 owned lots, 38,734 were raw land or land under development, while 10,827 were finished vacant lots.