While some analysts in the past have been worried about the firm s geographic concentration concerns that helped push the company to spread out the same market watchers say the strong local job and housing market could now be a big plus. Northern Virginia s expected strong job-growth projections, in particular, could protect the company from national doldrums. Of course, if the economy tanks and mortgage rates begin to rise, the picture could change for the company regarded as the nation s most financially efficient home builder. NVR earns a higher return than other builders because it does not tie up large amounts of capital in land purchases. Instead it buys options on purchased lots, thus shielding itself from downturns in land prices.
Analysts say the company s backlog ensures a revenue stream for a long time.
The firm said it had a 16 percent increase in home-building revenues in backlog at the beginning of this year compared with its backlog in 2000. NVR has also continued an aggressive policy of repurchasing its common stock. News Jobs AP Shopping Archives Entertain.