Toll Brothers Inc.’s sales rose in the latest quarter, fueled by low borrowing costs and shifting living preferences driven by the pandemic.
The luxury home builder said it generated $2.55 billion in sales, a 7% increase from a year ago and ahead of analysts’ projections of $2.08 billion, according to FactSet. Revenue from home sales, which represents a majority of the company’s total revenue, rose about 9% to $2.5 billion.
“We are currently experiencing the strongest housing market I have seen in my 30 years at Toll Brothers, and we continue to increase prices in nearly all of our communities,” Chief Executive Douglas Yearley said in prepared remarks.
The number of contracts for new homes increased 68% to 3,407 units from last year, while contract value rose 63% to $2.74 billion in the quarter ended Oct. 31.
The U.S. housing market has gotten a boost from pandemic trends as many have left large cities in search of bigger homes in less crowded areas where they can work remotely and enjoy more space.
