Industry News

New-home contracts slide 29% at luxury builder

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In another sign of a slowing housing market, luxury-home builder Toll Brothers today reported a 29 percent drop-off in signed contracts for new homes in the second quarter totaling $1.56 billion. The Horsham, Pa.-based builder reported an 18 percent increase in second-quarter home-building revenues of $1.44 billion, in preliminary results released today. Second-quarter-end backlog rose 3 percent to approximately $6.07 billion. The company recorded a 25 percent increase in home-building revenue to $2.78 billion for the six-month period ended April 30, 2006, while signed contracts of about $2.7 billion declined 26 percent from the same period last year. Based on its six-month deliveries and current backlog, the company believes it will deliver between 9,000 and 9,700 homes in fiscal 2006, a reduction of 200 homes from its previous guidance range. Today's results are preliminary and unaudited, and Toll Brothers will announce final totals when it releases second-quarter and six...