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Toll Brothers sales jump amid booming housing market
Luxury homebuilder reported $2.6B in sales in the third quarter
Toll Brothers is having a banner year as demand for new homes skyrocketed during the pandemic.
The luxury homebuilder reported $2.6 billion in sales in the third quarter, a 7 percent uptick from last year, the Wall Street Journal reported. Revenue from home sales rose about 9 percent to $2.5 billion.
“We are currently experiencing the strongest housing market I have seen in my 30 years at Toll Brothers,” CEO Douglas Yearley said in a statement.
Contracts for new homes jumped 68 percent from last year, to 3,407 units. At the same time, contract values increased 63 percent to $2.74 billion in the quarter ending Oct. 31.
The developer is also seeing an uptick in finished homes: Its home-building deliveries jumped 10 percent from last year, to 2,940. It plans to deliver approximately 1,675 homes in the first quarter of 2021, with an average price between $780,000 and $800,000.
The housing market has performed remarkably well during the pandemic. Mortgage rates are at record lows and many people are looking for bigger homes in less crowded areas where they can work remotely. Homebuilder confidence has also rebounded — although the increase in demand has led to all-time lows in inventory and a jump in home prices.
In the most recent quarter, Toll Brothers reported a profit of $199.3 million, or $1.55 per share, compared to $202.3 million, or $1.41 per share, in the same period last year.
[WSJ] — Keith Larsen