(Reuters) – D.R. Horton Inc posted a 22% rise in quarterly profit on Wednesday, as the largest U.S. homebuilder benefited from elevated property prices amid tight supply.
Homebuilders have benefited as demand has far outpaced supply, which has been hampered by raw material and labor shortages, although analysts say demand could taper as central banks hike interest rates to contain inflation.
A report from the Federal Housing Finance Agency last month showed home prices increased 11.9% in the 12 months through August, after climbing 13.9% in July.
The median new house price in September was $470,600, a 13.9% increase from a year earlier. There were 462,000 new homes on the market at the end of last month, up from 457,000 units in August.
D.R. Horton’s total revenue rose 19% to $9.64 billion in the fourth quarter ended Sept. 30.
Net income attributable to the company rose to $1.63 billion, or $4.67 per share, from $1.34 billion, or $3.70 per share, a year earlier.
(Reporting by Kannaki Deka in Bengaluru; Editing by Shinjini Ganguli)
