One of the leading home building and mortgage banking companies in the United States, NVR, Inc. ( NVR ) unveiled a new series of luxury homes in Pittsburgh, PA and Morgantown, W.Va. under its Heartland Homes division.
These luxury homes offer spacious floor plans with gourmet kitchen layouts. The homes also have nine-foot ceilings on all floors, spacious master retreats and tile floors in the master bathroom.
The Heartland homes are ENERGY STAR certified and carry 10 years structural warranty. The residents can therefore save up to 30% on monthly utility bills compared with other standard homes.
The luxury homes are also available in other Heartland Homes communities in Allegheny, Butler and Washington Counties and also in the Summit at Cheat Lake community in Morgantown, WV.
The rising demand for new homes has led to a favorable situation in the housing market, where inventory levels are dropping and prices are moving up. The demand is particularly high for luxury homes. Therefore adequate product introduction is necessary in order to maintain the required level of inventory to meet the growing demand for homes.
We like NVR's initiative to constantly introduce new products. With frequent introduction of products, NVR will be able to capitalize on the improving housing market. However, we would prefer to stay on the sidelines as the housing market is still in the recovery stage and the rest of the macroeconomic parameters are on a slow growth trajectory. Currently, NVR carries a Zacks Rank #4 (Sell).
Other stocks in the homebuilding sector that are performing well and deserve a mention include D R Horton Inc ( DHI ), The Ryland Group Inc. ( RYL ) and Meritage Homes Corp ( MTH ), all of them carrying a Zacks Rank #1 (Strong Buy).