CEO Bob Toll thinks buyer confidence has returned and is betting it sticks around. Paraphrased from Builder Magazine Housing has gotten better and gone beyond anecdotal tales…strong enough to indicate a true reverse in market conditions, Toll Brothers CEO Bob Toll told analysts Wed. Aug 12. “the mood of the market has changed,” Tolls said while announcing better than expected Q2 earnings. “it’s not greater affordability or ability to finance…it’s a better feeling about the present and future of the economy.” While the number of people visiting Toll Brothers’ communities still “stinks” the people buyers are serious and they’re not quibbling as much about price. Before prospects would ask ‘Where are you? What’s your price?’ They would keep coming back looking for more incentives and a better deal and that seemed to be what was driving sales. Recently they are concerned more with other aspects, such as lots, location, general options, what can be built and when can they get into the home. “It’s no longer a price equation.” It’s strong enough evidence for Toll to pull communities out of mothballs. “We believe it’s the right thing to do to try and crank it up more than to sit and wait…”
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