Toll Bros. Experiences An Increase In Signed Contracts

Luxury homebuilder Toll Brothers Inc. gave investors new optimism about moneythe housing market recovery, stating it posted the first annual increase in signed contracts for new homes in four years.

Toll said that new home contracts rose 3 percent from the third fiscal quarter last year, and the number was up 44 percent from the second fiscal quarter this year. Demand was so robust the company has been able to scale back the incentives it offered to get buyers in the door.

“The mood has changed,” said Robert Toll, chairman and CEO, of the Horsham, Pa.-based company. “Our traffic still stinks … but those people coming in are more serious.”

Only 9 percent of buyers backed out — the lowest cancellation rate in three years.

The trend impressed investors, who drove the builder’s stock up more than 14 percent. Shares added $2.94 to close at $23.42.

Toll sold 792 homes, generating $461.3 million in revenue for the three months ended July 31. Revenue was down 42 percent from the same period last year because home prices have declined and Toll has fewer communities around the country.

Several markets highlighted that were showing signs of recovery: the New York suburbs, Jersey City, Raleigh, N.C., Washington D.C., as well as some areas of Virginia, Connecticut, Florida, Delaware and northern California.

Toll’s results are an added confirmation that a broad but slow recovery of the housing market is under way. Other major builders — including D.R. Horton Inc., Pulte Homes Inc. and Centex Corp. — all recently reported better earnings for the first half of the year.

Toll Brothers will release final quarterly results on Aug. 27, and analysts surveyed by Thomson Reuters expect a loss of 32 cents a share on revenue of $377.1 million. And despite the upbeat report, the company said there remain too many uncertainties in the market to offer earnings guidance.

For more information about toll brothers properties please go to The Incredible Hudson Tea Building.

If  you would like assistance finding the home of your dreams, please contact Eddie Perez at  (201) 344-2886, www.Investhoboken.

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