United Homes Group reaccelerated its growth in the fiscal third quarter, growing net new orders 25% year over year and revenue 35% year over year.

Interim CEO Jamie Pirrello said the positive results were in part due to a number of operational initiatives that “have begun to bear fruit.” The initiatives include offering in-demand home designs, rebating direct costs, and managing overhead spend.

Revenue in the third quarter grew to $118.6 million from $87.7 million in the prior-year period. Home closings increased 30.4% to 369 in the third quarter, while net new home orders increased to 341 in the period. The average selling price for homes closed during the period was approximately $320,000, a 1.4% increase from the third quarter of 2023.

“Given the current mortgage rate environment and the seasonal slowdown our industry typically experiences in the fourth quarter, we expect incentives to remain elevated for the remainder of the year,” said president Jack Micenko during the company’s earnings call.

During the quarter, Micenko said United Homes Group made “solid headway” aligning its product to the needs of the buyers in its markets and integrated recently acquired companies, including Rosewood Communities and Creekside Custom Homes, into its home building platform.

“Our focus will continue to be on the more affordable segments of the market as we believe this represents the most undersupplied and highest in demand aspect of housing,” Pirrello said. “Our average sales price of production-built homes in the third quarter was $320,000, which is one of the lowest ASPs of the publicly traded home builders.”

For the third quarter, United Homes Group posted a net loss of $7.3 million, or $0.15 per share. The builder ended the quarter with 55 active communities and a backlog of 220 homes. United Homes Group had approximately 8,600 lots owned or controlled at the end of the period.

“Inventory turns are an important part of our return-focused strategy. We’ve been carrying too many completed specs,” Pirrello said. “As a production builder, we need to sell homes and move them off our balance sheet as soon as possible. We know that maintaining sales momentum in a community is important and we plan on staying competitive in the marketplace so that we cycle through our lot positions and drive higher inventory turns.”