Home is defined as a single-family residence and includes attached and detached single-family residential homes.
Absorption Rate/Contracts Per Community
Absorption rate is the number of net new home orders divided by average sales locations. In the U.K., contracts per community are also known as sales per site.
Backlog consists of homes sold under sales contracts not yet delivered to customers. U.K. home builders use the term “order book” instead of backlog.
Homes Closed (homes delivered)
Homes closed, or homes delivered, represents the homes delivered to the customers since the project opened.
Average Selling Price
Average selling price of the homes delivered, calculated as revenue divided by homes delivered.
Average Backlog Price
Average backlog price is derived using backlog volume divided by backlog value.
Average Order Price
Average order price using net new orders divided by order value
Backlog Conversion Rate
Backlog conversion rate represents the number of homes delivered/closed in a given period divided by the backlog at the beginning of the period. The majority of analysts use volume as the base when computing the backlog conversion rate. Alternatively, this can be calculated as realized revenue divided by the backlog.