NVR faces risks from general economic conditions, interest rate fluctuations, customer financing access, mortgage industry regulations, secondary market loan sales, competition, land and material costs, labor shortages, pandemics, weather events, and government regulations. The company also notes potential impairment of contract land deposits and volatility in the stock and financial markets. Litigation could also negatively impact the company.
Financial Upside
NVR's strong balance sheet and disciplined lot acquisition strategy position it to capitalize on opportunities from market volatility. Solid new home demand, despite affordability issues, and a limited supply of resale homes support continued sales. The company expects to benefit from market share gains and expansion into adjacent markets. Repurchasing shares of common stock is a stated objective to increase shareholder value.
