PulteGroup grew closings by 9% and home sales revenue by 11% during a record-setting fiscal 2024. For the full year, the home builder generated home sales revenue of $17.3 billion, home closings of 31,219, and profit of $3.1 billion, or $14.69 per share.

In the fiscal fourth quarter, PulteGroup generated home sales revenue of $4.7 billion, a 13% increase compared to the fourth quarter of 2023. Revenues were driven by a 6% increase in closings to 8,103 homes and a 6% increase in average selling price to $581,000.

Executive vice president and chief financial officer Bob O’Shaughnessy said the increase in average selling price reflected the relative increase in the proportion of closings in the home builder’s move-up segment compared to the fourth quarter of 2023. Move-up buyers accounted for 40% of closings, first-time buyers accounted for 40% of closings, and active adult buyers accounted for 20% of closings in the fourth quarter of 2024; a year ago, move-up buyers accounted for 36% of closings while active adult buyers accounted for 24% of closings.

Net new orders in the fourth quarter totaled 6,167 homes, essentially flat compared to the fourth quarter of 2023. The value of net new orders increased 4% to $3.5 billion while the home builder’s average community count in the period increased 4% to 960. Fourth quarter profit was $913 million, or $4.43 per share.

At the end of the fiscal year, PulteGroup had a unit backlog of 10,152 homes, down 16% from 2023. In the quarter, PulteGroup allocated $1.5 billion toward land acquisition and development, bringing the full-year 2024 total to $5.3 billion. At year’s end, the builder had 235,000 lots under control.

“Despite Federal Reserve actions to lower short-term interest rates, mortgage interest rates remained elevated in the fourth quarter, which impacted buyer demand as home buyers continued to face affordability challenges,” said president and CEO Ryan Marshall. “The operational changes we have implemented in response to these conditions, including targeted sales incentives coupled with faster construction times, have yielded a sales backlog and inventory in process that have us well-positioned for the upcoming spring selling season.”

PulteGroup affirmed that the spring selling season will be the best barometer for how home buyers will behave in the current economic environment after a return to seasonality in the latter half of 2024. Marshall said the company will monitor its investment in production levels moving through 2025 with the goal of reducing spec inventory to between 40% and 45% of total inventory by the end of the year. At the end of the fourth quarter of 2024, spec inventory accounted for 53% of total inventory in production.

“The long-term outlook for new home construction is positive. The U.S. has navigated recessionary concerns well. Employment remains strong and interest in new homes remains at high levels,” said Marshall. “In addition, the structural shortage of housing due to under building, ever increasing land entitlement challenges, and the ongoing labor availability challenges coupled with our expectation of continuing lower resale transactions leads us to believe that new home supply will continue to be absorbed without a significant increase in standing inventory.”