D.R. Horton Inc, the largest U.S. homebuilder, has reported a 44% increase in profit for the fourth quarter. The company says it sold more homes and that new orders rose by 19%
New orders rose to 8,477 homes, increasing in all regions except the Midwest where it fell by one unit.
The increase in sales arrives after a July in which U.S. homebuilder sentiment reached its highest point in a decade. August and September were particularly strong according to the National Association of Home Builders.
D.R. Horton was likely helped by the government’s recent attempts to ease lending conditions for first-time home buyers. That demographic had previously made up one-third of U.S. home sales.
Home sales may have also picked up as homebuyers sought to purchase homes with interest rates still at historic lows. With the Federal Reserve expected to raise rates in December, now is the perfect time to buy.
Wage growth has also been reported for the first time in three years, which likely helped push some buyers towards a home purchase.
Shares of D.R. Horton, which sells homes under the D.R. Horton, America’s Builder, Express Homes and Emerald Homes brands, rose 2.5% in light premarket trading on Tuesday.
Net income rose to $238.9 million, or 64 cents per share, including a non-cash tax benefit of $17.5 million and a pretax goodwill impairment charge of $9.8 million.
Revenue increased 26.9% to $3.05 billion.