Toll Brothers is one of the premiere home builders in the country. They specialize in luxury homes that often start around $400,000 at a minimum and goes up from there. However, in a bad housing market, even the top dogs will find themselves in difficulty.
Toll Brothers, Americas Luxury Home Builder Reports Q4 Loss of $111 Million
On Friday, they announced a $111 million loss in its overall share dollars between August and October after a great start to the year as requests for new homes declined because of the poor housing market in many areas where they build homes such as Las Vegas, Phoenix, Chicago, and many areas in California. Their revenue for the same time period fell 30% to around $486 million.
Toll Brothers builds homes in 21 states, and also builds top flight golf courses across the country. One of their specialties are golf course communities for 55+ adults such as the Regency at Dominion Valley in Haymarket, VA, which was voted the #w best retirement destination in 2009. The golf course there was designed by Arnold Palmer and his design company, which also includes a biking and walking trail.
Toll is keeping its faith in the market close to the vest, believing that the overall market will be rough through the first half of 2010. In the report, they indicated that they expect to lose another 7% in sales for 2010, which coincidentally was the same percentage their stock price fell on Friday after the announcement. And, because of the types of houses they build, they’re a company that doesn’t get a lot of benefit from people using the $8,000 first time home buyer credit, since the majority of their buyers are existing home owners. And the $6,500 tax credit for existing home owners won’t make much of a dent in the homes they build either.
Still, they are building new communities, and they have high hopes for a new community still in development in the San Francisco area.
See more:
Toll Brothers Stock Research
Toll Brothers Q4 Loss 2009
NewsLib – Toll Brothers News
Mitch Mitchell is a consultant who writes and participates in many different fields, including real estate finance issues. 
Toll Brothers started a development in my hometown just as the market started to tank and I was suprised to see them continue on with it considing what was coming. But, I guess when you have something that big in the works it’s hard to stop it.
Toll Bros are still building out here in Las Vegas as well. They do build some of the nicest homes. Prices here have dropped in the luxury market quite a bit. It has to be hurting their bottom line.
.-= Chas@Las Vegas Real Estate´s last blog ..First Time Home Buyer Tax Credit Extended =-.
They build some beautiful homes out here in the Austin area as well. I figured this would happen based on their price range and where they build. With some of their markets flooded with REOs, I can see where they would struggle.
In my market Toll is not that highly regarded. They take a lot of short cuts in the construction of their homes. I will compliment them of what great marketers they are and they always have great floor plans.
.-= Hopkinton MA Real Estate´s last blog ..Massachusetts Public Open Houses Are a Waste of Time For Home Sellers =-.
I hope all the big home builders fold and the gov should make them payback the billions they were involved in help stealing