PulteGroup, NVR and Taylor Morrison report big Q3 profits

The nation’s largest home builders enjoyed healthy profits this summer as the market for existing properties remained ice cold. 

Declining mortgage rates benefitted builders through September and they reported higher net income in the third quarter compared to their performance the same time last year. Three major companies however reported smaller new home orders between July and September, compared to spring activity. 

Price tags for new homes also wavered on an annual basis. Many home builders with mortgage operations continue to offer buydowns and price cuts, but the sector’s largest companies are pursuing differing strategies to attract borrowers. 

“Overall market dynamics remain competitive,” said Robert T. O’Shaughnessy, executive vice president and chief financial officer at Pulte Group, in an earnings call Tuesday. “As such, we expect incentives to remain elevated for the remainder of the year.”

Taylor Morrison Home Corp. chairman and CEO Sheryl Palmer on Wednesday meanwhile said her company wrapped its lowest quarter of incentives in two years.

Builder stocks this week took a slight tumble following earnings reports. The S&P Homebuilders Select Industry Index also dipped slightly but remains lofty following a summer rally and a housing market still seriously inventory-starved. 

The following are some earnings figures from the industry’s largest companies. This list will be updated.