Luxury homebuilder Toll Brothers Inc., which has developments in Connecticut, said 3 percent more homebuyers signed contracts in its fiscal third quarter, the first annual increase in four years.
Toll said it 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 are declining and Toll has fewer communities around the country.
Compared to the second quarter, signed contracts soared 44 percent and only 9 percent of buyers backed out — the lowest cancellation rate in three years. Toll said demand was so robust the company has been able to scale back the incentives it offered to get buyers in the door.
“Although some of our markets are still stuck in the mud, many are improving,” Robert Toll, the company’s chairman and CEO, said in a statement. He also noted that buyers are increasingly confident.
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. (AP)
