D.R. Horton Inc. sold and closed more homes in the quarter ending March 31 than any other U.S. builder, according to the company’s chairman Donald Horton.
The Fort Worth, Texas-based builder closed 5,640 homes in the second quarter and its mortgage company financed 58% of the buyers.
Operating income from the
Overall, the company reported total net income of $110 million in 2Q, up 173% from a year ago. It’s the most profitable quarter for the builder since 2006.
“The spring selling season is off to a strong start at D.R. Horton, with robust demand driving higher sales volumes and favorable pricing, which is reflected in the 14% increase in our average selling price. We are in an excellent position to continue to meet increased sales demand and aggregate market share with 15,800 homes in inventory and 175,000 lots owned or controlled under option contracts, of which 58,000 lots are fully developed,” the chairman said.
D.R. Horton has traditionally focused on the first-time buyer and first-timers represented 47% of the originations. The publicly traded builder did not disclose origination data in its 2Q earning press release. Friday’s release did disclose that it had $394.3 million in mortgages classified as held for sale.
One executive noted that FHA/VA originations accounted for 49% of originations, compared to 57% in the second quarter of 2012. The lender also originates Fannie Mae and Freddie Mac loans.
“We have focused on the first-time homebuyer and we still believe that is the largest component of the home market. We are priced very competitively and we are able to offer buyers moving out of apartments an attractively priced home,” Horton said.
About 18 months ago “we began focusing on move-up buyers and we are penetrating that market very well,” he added.
