Builder Profile: PulteGroup – Fueling Housing Market Recovery

For more than 60 years, Pulte Group has been providing homes throughout the United States. What started as a single home built and sold by the entrepreneurial spirit of an 18-year-old Bill Pulte, has grown into the industry’s sole multi-brand homebuilding company with the ability to serve homebuyers in all phases of life. Today, PulteGroup operates in approximately 50 markets throughout the country.

The PulteGroup owns brands such as Pulte Homes, Centex, Del Webb, DiVosta and John Wieland Homes and Neighborhoods. The new-construction homes are inspired by their buyers, and designed and tailored to the way buyers live their life. This means smarter living space and rooms for flexible use. The high-quality construction blends functional design with innovation.

“We believe that continued favorable trends in the economy, job growth, demographics and consumer confidence can more than offset the impact of modestly higher rates, allowing the housing recovery to continue at a steady pace.”
—Ryan Marshall, President and CEO, PulteGroup

According to the company’s fourth quarter results in 2016, home sale revenues for the totaled $2.4 billion, an increase of 21 percent over the prior year. Higher revenues for the period were driven by a 9 percent increase in closings to 6,197 homes, combined with an 11 percent increase in average selling price to $391,000. The company’s average selling price continues to benefit from a shift in the mix of homes closed, along with price increases realized by all three of the company’s national brands: Centex, Pulte Homes and Del Webb.

“With the gains achieved in our fourth quarter results, PulteGroup completed a year in which it realized significant growth, including double-digit year-over-year increases in orders, closings, revenues, net income and backlog,” said Ryan Marshall, President and CEO of PulteGroup.  “Consistent with the company’s long-term objectives, our outstanding 2016 operating results drove strong returns on invested capital, which we view as an important component to delivering increased shareholder value over the housing cycle.”

PulteGroup’s year-end backlog of 7,422 homes, valued at $2.9 billion, compares with prior year backlog of 6,731 homes, valued at $2.5 billion. The average selling price in backlog increased 9 percent over the prior year to $396,000, which reflects a continued mix shift toward higher priced homes and moderate price increases.

Marshall continued, “The gains PulteGroup realized for the quarter and full year reflect the successful investments we are making into our business, in combination with the positive demand conditions that continue in the housing market. We believe that continued favorable trends in the economy, job growth, demographics and consumer confidence can more than offset the impact of modestly higher rates, allowing the housing recovery to continue at a steady pace.”

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