Responding to Market Pick-up, Fort Washington-based Toll Brothers ‘Dropping Incentives’

Toll brothers ceo in suit
Image via Toll Brothers.
Doug Yearley Jr., CEO of Toll Brothers.

Fort Washington-based Toll Brothers noted a residential real estate market upswing at the start of 2023, recording as many contracts in January as the home builder made in November and December combined. Ryan Mulligan unlocked the details for the Philadelphia Business Journal.

According to Toll Brothers CEO Douglas Yearley, February is showing a similar promise.

Last week, the company recorded the highest total deposits on new homes in the past 30 days. That activity is particularly notable in light of the continuing swell of mortgage rates. They are currently heading toward their highest level since the onset of 2023.

“We think it’s more driven by buyer sentiment, by the seasonality, by people coming back out,” said Yearley. “They were able to absorb the higher rate, and they wanted to buy.”

As a result, the company is pulling back from the incentives offered during the lower-demand timeframe. The decision is a significant indicator of the company’s optimism about the market in the coming months.

“We are dropping incentives; we are raising prices,” Yearley commented. “We’re doing it selectively; we’re doing it surgically. But it’s happening throughout the country.”

Toll Brothers also reaffirmed the full-year guidance of a 27-percent adjusted gross margin.

Read more about Toll Brothers market responses in the Philadelphia Business Journal.


ABC News looked at the relationship between mortgage rates and sales.

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