After luxury home orders rose 42 percent in the fiscal fourth quarter, shares of the largest U.S. luxury homebuilder, Toll Brothers Inc, jumped from $2.23 to $20.62.
To weather the recession, Toll focused on increasing cash and reducing unsold inventory. According to the Census Bureau, this September, the median price for a new U.S. home was $204,800, down from a record high of $262,600 in March 2007. Now, as smaller rivals try to secure financing for new construction, Toll stands to gain a bigger market share.
Chairman and Chief Executive Officer, Robert Toll, said the increase in orders reflects a reviving economy.
Toll’s good news is yet another announcement this week that raises hope for the strengthening world economy. British banking giants, Barclays and HSBC, also declared that the worst seemed to be behind them and American Express reported that consumer spending was up, indicating the return of consumers’ confidence in the economy.
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