NVR(NVR) - 2022 Q4 - Annual Report

Backlog and Home Prices - The backlog totaled 9,162 units valued at approximately $4.3 billion as of December 31, 2022, down from 12,730 units valued at approximately $5.8 billion a year earlier[20] - The average price of homes in backlog increased to $472,200 at December 31, 2022, compared to $454,200 at December 31, 2021[20] - The average price at which homes were settled in 2022 was $454,300, up from $403,900 in 2021[18] Loan Activity - NVRM closed approximately 17,000 loans with an aggregate principal amount of approximately $6.3 billion in 2022, compared to approximately 17,700 loans with an aggregate principal amount of approximately $6.1 billion in 2021[28] - NVRM's mortgage loans in process that had not closed totaled approximately $2.5 billion as of December 31, 2022, down from approximately $3.9 billion a year earlier[28] - Mortgage loans held for sale amount to $319,481,000 with an average interest rate of 5.6%[183] - Forward loan commitments stand at $11,300,000[183] Cancellation Rates - The cancellation rate for homes sold was 14.2% in 2022, compared to 9.2% in 2021 and 14.9% in 2020[20] Operational Insights - The company expects to settle substantially all of its December 31, 2022 backlog during 2023, subject to potential construction delays due to supply chain disruptions[20] - The company operates in four reportable homebuilding segments across various geographic regions, including the Mid Atlantic, North East, Mid East, and South East[19] - The company employs approximately 6,550 full-time employees as of December 31, 2022, a slight decrease from approximately 6,600 employees in the previous year[32] - The company utilizes independent subcontractors under fixed price contracts for construction work, ensuring a diverse supply chain[22] Financial Obligations - Interest-bearing deposits in the homebuilding segment total $2,453,692,000 with an average interest rate of 4.4%[183] - Fixed rate obligations are recorded at $900,000,000 with an average interest rate of 3.0%[183] - The fair value of forward trades of mortgage-backed securities is $(16,060,000)[183]