Toll Brothers Inc. will be in the spotlight on Wednesday when it releases its fiscal third-quarter results as an improving housing market has a ripple effect throughout the overall economy.
The company’s second quarter results showed strength in several areas including a rise in revenues, contracts that prospective home buyers signed and backlog of houses in various stages of completion. Confident in the recovering housing market and economy, the Horsham, Pa., company seized on the ability to raise prices on its properties and increased prices on average by about $26,000.
While consumer confidence, a rallying stock market and an overall improved economy helped spur demand, low interest rates were also a key ingredient. Interest rates have started to tick up and may prompt some buyers on the fence to make a move before they go up any higher.
Home builders, in general, are feeling pretty good about their business. The National Association of Home Builders/Wells Fargo Housing Market Index notched up an additional 3 points to 59 for its highest reading since 2005. This measures homebuilder’s sentiment on current and future home sales. A score over 50 is generally considered a positive for the residential construction market.
Toll Brothers’ (NYSE: TOL) shares have traded at a 52-week high of $39.25 and low of $28.50. Shares are trading at around $31.12.
Real Estate, Economic Development
Source: Philadelphia Business Journal
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