Fort Washington-based Toll Brothers has reported better-than-expected quarterly orders thanks to strong demand for high-end homes that is not wavering as the pandemic continues for the second year, writes Prashant Gopal for Bloomberg.

Purchase contracts for the three-month period through January increased two percent from a year earlier to 2,929. Analysts forecast 2,844 orders.

Toll Brothers is the largest builder of luxury homes in the nation and as such, is well-positioned to fully take advantage of the current skyrocketing demand for large houses in the suburbs.

At this time, rising mortgage rates are pushing buyers to act before borrowing costs increase. Since inventory is seeing record lows throughout the country, these buyers are turning to new construction.

Additionally, Toll’s wealthy customers have higher incomes which makes them more immune to rising rates. They can also often pay cash because they had a previous home to sell.

For the last quarter, the company faced a tough comparison to the results it posted a year earlier when its contracts were up 59 percent.

Nonetheless, Toll’s Chief Executive Officer Douglas Yearley called the last quarter “solid,” with a gross margin on home sales 23.6 percent, up from 20.5 percent the previous year.

Read more about Toll Brothers’ quarterly orders in Bloomberg.

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