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Toll Brothers recently surpassed estimates for quarterly profit, yet the company's shares ended up falling 4.8 percent as a result of the growing concerns over a housing industry slowdown.
The home builder said that indicators for future revenue rose 19.7 percent in the reported quarter, bolstered by growth in Western markets including California, Reuters reports. Toll Brothers' average price of homes sold went up almost 7 percent to $826,000, and the number of homes sold rose almost 20 percent to 1,423 year-over-year. Toll Brothers said that the $2,000 rise in lumber cost per home did drive up building costs in the first quarter of 2018.
Concerns of rising mortgage rates and the impact of the new tax law on higher-priced homes were largely weighing on the housing sector, Moody’s Investors Service Vice President Joseph Snider told Reuters ... However, Toll Brothers, which builds homes that can cost upwards of $2 million, said it saw no sign of any impact on its customers from changes in state and local tax and mortgage deductions for homebuyers.
