Business Description
AV Homes, Inc. is a homebuilder engaged in the business of homebuilding and
community development in Florida, Arizona, and North Carolina. Our business
focuses on the development of (i) active adult communities, which are age-restricted
or age-targeted to the age 55 and over active adult demographic, and (ii) primary
residential communities, which serve first-time and move-up buyers, and the
construction and sale of residences within these communities. We utilize our
deep experience, strong operating platform, and land inventory to capitalize
on the strengthening housing environment and favorable demographic trends within
our core markets. We are publicly held and our common stock is traded on the
NASDAQ Stock Market under the symbol “AVHI.”
Our primary business is homebuilding, which includes the acquisition, development
and building of active adult and primary residential home communities, in Florida,
Arizona and North Carolina.
General market conditions. Demand for housing in the United States is driven
by a variety of factors including, among other things, population growth, household
income, mortgage rates, affordability, consumer confidence and employment levels.
The supply of available housing varies from time to time based on a number of
factors, including, among other things, home starts, inventories of existing
homes available for sale and activities of speculative investors. While we believe
that higher interest rates are inevitable and may have a moderating effect on
demand and pricing, we believe this impact will be outweighed by the other factors
driving increased sales activity as overall new home sales remain low compared
with historical levels.
Our primary business is homebuilding, which includes the acquisition, development
and building of active adult and primary residential home communities in Florida,
Arizona, and North Carolina.
Construction time for our homes depends on the availability of labor and materials,
the type and size of the home, location and weather conditions. Construction
of a home in our active adult communities or primary residential communities
is typically completed within five months following commencement of construction.
We act as the general contractor for the construction of our communities. We
typically engage subcontractors on a project-by-project basis to complete construction
at a negotiated fixed price. Agreements with our subcontractors and material
suppliers are generally entered into after competitive bidding. Our subcontract
agreements typically require the subcontractor to meet certain insurance requirements
and to indemnify us against claims related to their work. Our project managers
and superintendents supervise the construction of each home, schedule and manage
the activities of subcontractors and suppliers, subject their materials and
work to quality control standards and assure compliance with zoning and building
codes.
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