New Luxury Homes from NVR in Ohio (DHI) (MDC) (NVR) (RYL)

Zacks

One of the leading home building and mortgage banking companies in the United States, NVR, Inc (NVR) unveiled its new Naples single family model home in Pataskala, Ohio.

Built under the Ryan Homes division, the luxury single family homes are located at Sugar Mill and come under the Southwest Licking Local School District. Sugar Mill is close to many restaurants, shopping centers and the Cumberland Trail Golf Course. The community is also close to I-70.

The Naples model home offers all the convenience of a single family home with ample living space, up to 4 bedrooms with a loft, 2.5 baths and 3-car garage. The owner’s bedroom consists of two walk-in closets and a spa like bath. Naples model homes come with a 10 year structural warranty and are ENERGY STAR certified. The residents can therefore save up to 30% on monthly utility bills.

The rising demand for new homes has led to a favorable situation in the housing market, where inventory levels are dropping and prices are moving up. The demand is particularly high for luxury homes. Therefore adequate product introduction is necessary in order to maintain the required level of inventory to meet the growing demand for homes.

We like NVR’s initiative to constantly introduce new products. With frequent introduction of products, NVR will be able to capitalize on the improving housing market. However, we would prefer to stay on the sidelines as the housing market is still in the recovery stage and the rest of the macroeconomic parameters are on a slow growth trajectory.

NVR carries a Zacks Rank #4 (Sell).

However, not all stocks in the homebuilding sector are performing as poorly as NVR. Stocks that are well placed at the current level include D. R. Horton Inc. (DHI), Ryland Group Inc. (RYL) and MDC Holdings Inc. (MDC), all carrying a Zacks Rank #1 (Strong Buy).

D R HORTON INC (DHI): Free Stock Analysis Report

MDC HLDGS (MDC): Free Stock Analysis Report

NVR INC (NVR): Free Stock Analysis Report

RYLAND GRP INC (RYL): Free Stock Analysis Report

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