RTs are not in my Acct. yet. For those sitting on the fence here is whats happening in the ANS market. And it`s only getting started.
The U.S. new-home market is beginning to recover as historically low mortgage rates and a tight inventory of existing houses push more people to consider buying from builders. The improvement is enabling homeowners to sell starter houses and move up to larger properties, such as those offered by Toll, which caters to customers with better access to cash and credit than first-time buyers usually have.
“The housing recovery is being driven by pent-up demand, very low interest rates and attractively priced homes,” Chief Executive Officer Douglas Yearley Jr. said during a conference call with investors. “With an industry-wide shortage of inventory in many markets, we are enjoying some pricing power.”
Revenue rose to $554.3 million in the quarter from $394.3 million a year earlier, Toll said. Pretax income increased more than 10-fold to $43 million. The company completed 963 home sales, a 39 percent increase.
The average price of the homes Toll delivered in the third quarter increased to $576,000 from $557,000 in the previous three months. The gross margin, which excludes interest and writedowns, widened to 24.4 percent from 23.4 percent a year earlier.