Fresh off reporting $17 million in second quarter profits and a 51 percent year-over-year increase in orders, Toll Bothers CEO Doug Yearly reported that it’s been a “great spring” for builders and the luxury market in a CNBC appearance yesterday afternoon (see video above).
Yearly said the home builders’ strongest market “by far” is the New York City area. Toll Brothers’ City Living brand has “great pricing power” in the area, evidenced by their Touraine condo on the Upper East Side and 2 Northside Piers and 205 Water Street in Brooklyn.
Yearly attributed the strong performance nationwide to a combination of a shortage of new home supply and a legion of consumers that “tired of waiting” on the sidelines. Yearly disputed the many reports that pricing would bump along the bottom for the next several years, and said his firm’s discounts have eroded from 15 percent a year or two ago to 5 percent today.
But he acknowledged that “we’re just one or two bad headlines away form people going back under the rock.”