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NVR NVR , Inc. Announces Second Quarter Results 07/21/21 RESTON , Va . , July 21 , 2021 / PRNewswire / -- NVR , Inc. ( NYSE : NVR ) , one of the nation's largest homebuilding and mortgage banking companies , announced net income for its second quarter ended June 30 , 2021 of $ 321.3 million , or $ 82.45 per diluted share . Net income and diluted earnings per share for the second quarter ended June 30 , 2021 increased 96 % and 94 % , respectively , when compared to 2020 second quarter net income of $ 164.1 million , or $ 42.50 per diluted share . Consolidated revenues for the second quarter of 2021 totaled $ 2.28 billion , an increase of 41 % from $ 1.62 billion in the second quarter of 2020 . For the six months ended June 30 , 2021 , consolidated revenues were $ 4.33 billion , a 35 % increase from $ 3.20 billion reported in 2020. Net income for the six months ended June 30 , 2021 was $ 570.1 million , an increase of 68 % when compared to the six months ended June 30 , 2020. Diluted earnings per share for the six months ended June 30 , 2021 was $ 145.53 , an increase of 66 % from $ 87.56 per diluted share for 2020 . Homebuilding New orders in the second quarter of 2021 decreased by 6 % to 5,521 units , when compared to 5,901 units in the second quarter of 2020. The average sales price of new orders in the second quarter of 2021 was $ 440,200 , an increase of 20 % when compared with the second quarter of 2020. The cancellation rate in the second quarter of 2021 was 8 % compared to 16 % in the second quarter of 2020. Settlements in the second quarter of 2021 increased by 32 % to 5,685 units , compared to 4,296 units in the second quarter of 2020. Our backlog of homes sold but not settled as of June 30 , 2021 increased on a unit basis by 19 % to 12,627 units and increased on a dollar basis by 35 % to $ 5.41 billion when compared to the respective backlog unit and dollar balances as of June 30 , 2020 . Homebuilding revenues of $ 2.22 billion in the second quarter of 2021 increased by 40 % compared to homebuilding revenues of $ 1.59 billion in the second quarter of 2020. Gross profit margin in the second quarter of 2021 increased to 22.6 % , compared to 19.2 % in the second quarter of 2020 . Income before tax from the homebuilding segment totaled $ 378.3 million in the second quarter of 2021 , an increase of 94 % when compared to the second quarter of 2020 . Mortgage Banking Mortgage closed loan production in the second quarter of 2021 totaled $ 1.57 billion , an increase of 37 % when compared to the second quarter of 2020. Income before tax from the mortgage banking segment totaled $ 39.2 million in the second quarter of 2021 , an increase of 161 % when compared to $ 15.0 million in the second quarter of 2020. This increase was primarily attributable to increased mortgage volume in the second quarter of 2021 , coupled with income in the second quarter of 2020 being adversely impacted by disruptions in the mortgage markets related to the COVID - 19 pandemic , which resulted in a reduction in fair value of mortgage servicing rights . Effective Tax Rate Our effective tax rate for the three and six months ended June 30 , 2021 was 23.0 % and 21.9 % , respectively , compared to 21.8 % and 8.5 % for the three and six months ended June 30 , 2020 , respectively . The effective tax rates in each period were favorably impacted by the recognition of an income tax benefit related to excess tax benefits from stock option exercises totaling $ 11.2 million and $ 28.6 million for the three and six months ended June 30 , 2021 , respectively , and $ 6.9 million and $ 62.5 million for the three and six months ended June 30 , 2020 , respectively . Other Matters - COVID - 19 The COVID - 19 pandemic has had a significant impact on all facets of our business . Our primary focus as we face this challenge is to do everything we can to ensure the safety and well - being of our employees , customers and trade partners . In each of our markets , we continue to operate in accordance with the guidelines issued by the Centers for Disease Control and Prevention as well as state and local health department guidelines , which has resulted in significant changes to the way we conduct business . Although current demand for new homes is strong , there remains uncertainty regarding the extent and timing of disruption to our business that may result from COVID - 19 and related governmental actions . There is also uncertainty as to the effects of economic relief efforts on the U.S. economy , unemployment , consumer confidence , demand for our homes and the mortgage market , including lending standards and secondary mortgage markets . We are unable to predict the extent to which this will impact our operational and financial performance including the impact of future developments such as the duration and spread of COVID - 19 , corresponding governmental actions , and the impact of such on our employees , customers and trade partners . About NVR NVR , Inc. operates in two business segments : homebuilding and mortgage banking . The homebuilding segment sells and builds homes under the Ryan Homes , NVHomes and Heartland Homes trade names , and operates in thirty - three metropolitan areas in fourteen states and Washington , D.C. For more information about NVR , Inc. and its brands , see www.nvrinc.com , www.ryanhomes.com , www.nvhomes.com and www.heartlandluxuryhomes.com . Some of the statements in this release made by the Company constitute " forward - looking statements " within the meaning of the Private Securities Litigation Reform Act of 1995 , Section 27A of the Securities Act of 1933 , as amended , and Section 21E of the Securities Exchange Act of 1934 , as amended . Certain , but not necessarily all , of such forward - looking statements can be identified by the use of forward - looking terminology , such as " believes , " " expects , " " may , " " will , " " should " or " anticipates " or the negative thereof or other comparable terminology . All statements other than of