Good news for the luxury real estate market just in time for Christmas. While many luxury home builders have been struggling to attract luxury home buyers, Toll Brothers Inc may have found the formula. According to Toll Brothers the largest U.S. luxury home builder they have gained as much as 14% in New York after orders surged 42%.
Bloomberg reports, Net contracts climbed to 765 in the three months through October from 539 a year earlier and the cancellation rate dropped to 6.9 percent from 30.2 percent, Horsham, Pennsylvania- based Toll said in a statement yesterday. The shares jumped $2.23 to $20.62 at 9:52 a.m., the biggest gain since Aug. 12.
“Those marketing luxury real estate need to start investing in publicity equity to build credibility. Typically, luxury real estate marketers have focused on mostly advertising over public relations. Toll Brothers remains smart about their luxury PR strategies and planning approach,” stated CR Cataunya Ransom, Lead Publicist of Mosnar Communications, Inc.
Toll focused on reducing unsold inventory and increasing cash to weather the housing recession. The median price for a new U.S. home was $204,800 in September after declining from a record high of $262,600 in March 2007, according to the Census Bureau.
“The surprise was more on the upside,” said David Goldberg, an analyst with UBS Securities LLC in New York. “They did better than we thought.”
Toll stands to gain a bigger market share as smaller rivals struggle to secure financing for new construction, said Goldberg, who rates the shares “buy.”
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