Homebuilder D.R. Horton Inc reported a better-than-expected profit as it sold more homes at higher prices in quarter ended June.
According to Reuters, Demand for homes has remained strong despite a recent rise in mortgage rates as a shortage of homes available for sale has enabled builders to raise prices.
D.R. Horton, which sells homes priced between $100,000 and $600,000, said average selling price rose 15 per cent in the third quarter.
Orders — a key indicator for builders, who do not book revenue until they finish a house — rose 12 per cent to 6,822 homes.
Net income fell 98 per cent to $146m, or 42 cents per share, from $787.8m, or $2.22 per share, a year earlier.
Analysts on average had expected earnings of 34 cents per share, according to Thomson Reuters I/B/E/S.
The year-ago quarter included a $716.7m tax benefit.
Third-quarter homebuilding revenue rose 47 per cent to $1.64bn.
D.R. Horton shares, which have gained about seven per cent value this year, closed at $21.20 on the New York Stock Exchange on Wednesday.
