Exhibit 99.1

NVR FOURTH QUARTER EARNINGS PER SHARE UP 35%

FOR IMMEDIATE RELEASE	Contact:	Dan Malzahn
	Office:	703-761-2137

January 27, 2005, McLean, VA—NVR, Inc. (AMEX: NVR), one of the nation’s largest homebuilding and mortgage banking companies, today announced that diluted earnings per share for its fourth quarter ended December 31, 2004 increased 35% and net income increased 25% when compared to the 2003 fourth quarter. Net income for the 2004 fourth quarter was $158,938,000, $20.13 per diluted share, compared to net income of $127,490,000, $14.91 per diluted share, for the same period of 2003. Consolidated revenues for the last three months of 2004 totaled $1,277,308,000, a 15% increase from $1,114,717,000 for the comparable 2003 quarter.

Net income for the 2004 fiscal year was $523,204,000, $66.42 per diluted share, compared to net income of $419,791,000, $48.39 per diluted share for 2003, a 25% increase in net income and a 37% increase in earnings per share. Consolidated revenues for 2004 totaled $4,327,701,000, a 17% increase from the $3,687,172,000 for 2003.

Homebuilding

New orders for the fourth quarter of 2004 increased 4% to 3,194 units, when compared to 3,072 units for the fourth quarter of 2003. Settlements increased in the fourth quarter of 2004 to 3,597 units, 3% more than the same period of 2003. Income before tax from the homebuilding segment totaled $250,719,000, an increase of 27% when compared to the fourth quarter of the previous year. Gross profit margins improved to 26.0% in the 2004 fourth quarter compared to 24.0% for the same period in 2003. The margin improvement primarily resulted from the ability to raise prices in certain markets that more than offset rising land and material costs.

New orders for 2004 totaled 13,231 units, a 5% increase over the 12,583 units reported for 2003. Home settlements for 2004 increased 6% to 12,749 units when compared to 12,050 units closed in 2003. Pre-tax homebuilding income rose to $821,143,000 for the 2004 fiscal year, an increase of 29% over the prior year. The number of homes in backlog at the end of 2004, 7,372 units, was 7% higher than the 6,890 units in backlog at the end of 2003. The dollar volume in backlog increased 25% to $2,906,041,000 at December 31, 2004, when compared to the same time last year. Gross profit margins increased to 25.7% in 2004 from 24.7% in 2003.

Mortgage Banking

Mortgage production of $824,859,000 for the three months ended December 31, 2004 was 27% higher than the same period last year. Operating income contributed by the mortgage banking operations during the fourth quarter of 2004 decreased 5% to $14,176,000, when compared to $14,894,000 reported for the same period of 2003. This decrease is primarily attributed to a shift away from fixed rate mortgages to adjustable rate and brokered mortgages, both of which are generally less profitable than fixed rate mortgages.

Operating income from the mortgage banking segment declined for the 2004 fiscal year to $50,862,000, a 12% decrease from the $57,754,000 reported for 2003. Mortgage production for the year increased 15% to $2,716,630,000.

Outlook

The Company expects net income for the first quarter of 2005 to increase approximately 8% over the first quarter of 2004. If housing activity remains at current levels during 2005, the Company expects net income for the full year to exceed 2004 results by approximately 15%.

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 1993, as amended, and Section 21E of the Securities Exchange Act of 1934. 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 variations thereof or comparable terminology, or by discussion of strategies, each of which involves risks and uncertainties. All statements other than those of historical facts included herein, including those regarding market trends, NVR’s financial position, business strategy, projected plans and objectives of management for future operations, are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance of NVR to be materially different from future results, performance or achievements expressed or implied by the forward-looking statements. Such risk factors include, but are not limited to, general economic and business conditions (on both a national and regional level), interest rate changes, access to suitable financing, competition, the availability and cost of land and other raw materials used by NVR in its homebuilding operations, shortages of labor, weather related slow downs, building moratoria, governmental regulation, the ability of NVR to integrate any acquired business, fluctuation and volatility of stock and other financial markets and other factors over which NVR has little or no control. The Company has no obligation to update such forward-looking statements.

NVR, Inc.

Consolidated Statements of Income

(amounts in thousands, except per share data)

	Three Months Ended December 31, 2004			Three Months Ended December 31, 2003
Homebuilding:
Revenues	$	1,255,714		$	1,092,131
Other income		653			863
Cost of sales		(929,102	)		(829,707	)
Selling, general and administrative		(73,490	)		(63,565	)
Operating income		253,775			199,722
Interest expense		(3,056	)		(3,068	)
Homebuilding income		250,719			196,654
Mortgage Banking:
Mortgage banking fees		19,320			20,164
Interest income		1,312			1,238
Other income		309			321
General and administrative		(6,556	)		(6,627	)
Interest expense		(209	)		(202	)
Mortgage banking income		14,176			14,894
Income before taxes		264,895			211,548
Income tax expense		(105,957	)		(84,058	)
Net income	$	158,938		$	127,490
Basic earnings per share	$	24.65		$	18.28
Diluted earnings per share	$	20.13		$	14.91
Basic average shares outstanding		6,449			6,973
Diluted average shares outstanding		7,894			8,551

NVR, Inc.

Consolidated Statements of Income

(amounts in thousands, except per share data)

	Year Ended December 31, 2004			Year Ended December 31, 2003
Homebuilding:
Revenues	$	4,247,503		$	3,600,917
Other income		2,655			3,385
Cost of sales		(3,156,286	)		(2,711,861	)
Selling, general and administrative		(260,795	)		(231,966	)
Operating income		833,077			660,475
Loss from extinguishment of 8% Senior Notes due 2005		—			(8,503	)
Interest expense		(11,934	)		(13,554	)
Homebuilding income		821,143			638,418
Mortgage Banking:
Mortgage banking fees		72,219			76,647
Interest income		4,249			5,198
Other income		1,075			1,025
General and administrative		(25,593	)		(23,823	)
Interest expense		(1,088	)		(1,293	)
Mortgage banking income		50,862			57,754
Income before taxes		872,005			696,172
Income tax expense		(348,801	)		(276,381	)
Net income	$	523,204		$	419,791
Basic earnings per share	$	80.83		$	59.28
Diluted earnings per share	$	66.42		$	48.39
Basic average shares outstanding		6,473			7,082
Diluted average shares outstanding		7,877			8,674

NVR, Inc.

Consolidated Balance Sheets

(dollars in thousands, except share data)

	December 31,
	2004		2003
ASSETS
Homebuilding:
Cash and cash equivalents	$	362,458	$	228,589
Receivables		14,020		9,550
Inventory:
Lots and housing units, covered under sales agreements with customers		538,770		480,492
Unsold lots and housing units		40,052		32,888
Manufacturing materials and other		9,718		10,393
		588,540		523,773
Assets not owned, consolidated per FIN 46		89,924		12,807
Property, plant and equipment, net		25,330		24,531
Reorganization value in excess of amounts allocable to identifiable assets, net		41,580		41,580
Goodwill, net		6,379		6,379
Contract land deposits		384,959		284,432
Other assets		109,778		117,575
		1,622,968		1,249,216
Mortgage Banking:
Cash and cash equivalents		4,907		3,630
Mortgage loans held for sale, net		138,595		96,772
Mortgage servicing rights, net		126		181
Property and equipment, net		996		875
Reorganization value in excess of amounts allocable to identifiable assets, net		7,347		7,347
Other assets		3,028		5,084
		154,999		113,889
Total assets	$	1,777,967	$	1,363,105

(Continued)

NVR, Inc.

Consolidated Balance Sheets (Continued)

(dollars in thousands, except share data)

	December 31,
	2004			2003
LIABILITIES AND SHAREHOLDERS’ EQUITY
Homebuilding:
Accounts payable	$	215,002		$	185,913
Accrued expenses and other liabilities		234,815			243,223
Liabilities related to assets not owned, consolidated per FIN 46		63,568			12,071
Customer deposits		203,835			157,005
Other term debt		4,077			4,519
Senior notes		200,000			200,000
		921,297			802,731
Mortgage Banking:
Accounts payable and other liabilities		11,949			12,166
Notes payable		9,726			53,340
		21,675			65,506
Total liabilities		942,972			868,237
Commitments and contingencies
Shareholders’ equity:
Common stock, $0.01 par value; 60,000,000 shares authorized; 20,597,709 shares issued for 2004 and 2003		206			206
Additional paid-in-capital		406,705			335,346
Deferred compensation trust- 549,029 and 510,118 shares of NVR, Inc. common stock for 2004 and 2003, respectively		(76,366	)		(64,725	)
Deferred compensation liability		76,366			64,725
Retained earnings		1,911,069			1,387,865
Less treasury stock at cost – 14,023,631 and 13,870,368 shares for 2004 and 2003, respectively		(1,482,985	)		(1,228,549	)
Total shareholders’ equity		834,995			494,868
Total liabilities and shareholders’ equity	$	1,777,967		$	1,363,105

NVR, Inc.

Operating Activity

(unaudited)

(dollars in thousands)

	Three Months Ended December 31,
	2004			2003
Homebuilding data:
New orders (units)
Washington		916			906
Baltimore		379			354
North (1)		1,257			1,291
South (2)		642			521
Total		3,194			3,072
Average new order price	$	381.7		$	329.4
Settlements (units)
Washington		1,134			1,024
Baltimore		433			489
North (1)		1,323			1,308
South (2)		707			681
Total		3,597			3,502
Average settlement price	$	348.3		$	311.0
Community count (average)		471			449
Mortgage banking data:
Loan closings	$	824,859		$	650,676
Capture rate		86	%		78	%
Common stock information:
Weighted average basic shares outstanding		6,449,000			6,973,000
Weighted average diluted shares outstanding		7,894,000			8,551,000
Number of shares repurchased		59,505			459,983
Aggregate cost of shares repurchased	$	31,887		$	220,127

(1) Delaware, New Jersey, New York, Ohio and Pennsylvania

(2) North Carolina, South Carolina, Tennessee and Richmond, VA

NVR, Inc.

Operating Activity

(unaudited)

(dollars in thousands)

	Twelve Months Ended December 31,
	2004			2003
Homebuilding data:
New orders (units)
Washington		3,861			3,478
Baltimore		1,597			1,764
North (1)		5,135			4,849
South (2)		2,638			2,492
Total		13,231			12,583
Average new order price	$	364.1		$	313.9
Settlements (units)
Washington		3,559			3,429
Baltimore		1,747			1,650
North (1)		5,015			4,538
South (2)		2,428			2,433
Total		12,749			12,050
Average settlement price	$	332.2		$	297.9
Backlog (units)
Washington		2,585			2,283
Baltimore		907			1,057
North (1)		2,626			2,506
South (2)		1,254			1,044
Total		7,372			6,890
Average backlog price	$	394.2		$	337.3
Lots controlled at end of period		83,500			70,000
Mortgage banking data:
Loan closings	$	2,716,630		$	2,369,867
Capture rate		84	%		83	%
Common stock information:
Shares outstanding at end of period		6,574,078			6,727,341
Weighted average basic shares outstanding		6,473,000			7,082,000
Weighted average diluted shares outstanding		7,877,000			8,674,000
Number of shares repurchased		674,694			1,103,968
Aggregate cost of shares repurchased	$	307,603		$	460,391

(1) Delaware, New Jersey, New York, Ohio and Pennsylvania

(2) North Carolina, South Carolina, Tennessee and Richmond, VA