Toll Brothers Orders Slip Amid Housing Slowdown

Toll Brothers Inc. saw a decline in new home contracts for the quarter concluding January 31, securing 2,303 signed agreements against an estimated 2,417. This performance highlights challenges within the housing market, where elevated prices and economic uncertainty are impacting buyer decisions.

The luxury home builder, while typically serving an affluent clientele, is not immune to the broader sluggishness affecting builder sentiment. Many in the industry are resorting to incentives such as price reductions to attract buyers, even as mortgage rates, though lower than in previous periods, remain significantly higher than the post-pandemic lows.

Despite the current order figures, Toll Brothers reiterated its projection for 2026 home deliveries, expecting to deliver between 10,300 and 10,700 homes. The company's stock saw a modest increase in post-market trading following the announcement.