UPDATE 1-Shortage of developed land hits PulteGroup profit
* First-quarter home sales revenue drops 1 pct
* Earnings $0.19/share vs $0.21/share a year earlier
* Home closings fall 10 pct
* Average selling price rises 10 pct (Adds details, background, shares)
April 24 (Reuters) - PulteGroup Inc, the No. 2 U.S. homebuilder, reported an 8 percent drop in first-quarter profit as a shortage of developed land constrained its ability to build more homes.
The company also reported a 6 percent drop in orders as it slows the pace of new-home building to focus on raising selling prices and improving margins.
PulteGroup's average selling price rose 10 percent to $317,000, but was not enough to offset a 10 percent drop in the number of completed homes.
Home sales revenue fell 1 percent to $1.09 billion.
The company's net income dropped to $74.8 million, or 19 cents per share, in the quarter ended March 31, from $81.8 million, or 21 cents per share, a year earlier.
PulteGroup's shares closed at $18.57 on the New York Stock Exchange on Wednesday. They have dropped 9 percent so far this year, compared with a 6 percent decline in the Dow Jones U.S. Home Construction index. (Reporting by Sagarika Jaisinghani in Bangalore; Editing by Sriraj Kalluvila and Maju Samuel)