An analyst asked Toll Brothers last week whether they thought luxury buyers were finally slowing down. CEO Karl Mistry said they weren't, and then mentioned something I thought was pretty revealing.
Choice, architecture, and the customer experience, he said, "give us that differentiated edge even over the custom builder community." (Read the full Q3 earnings call transcript.)
The fact that Mistry brought up custom builders in reply to that tells me who he has in mind when he thinks about who Toll is competing against on the luxury front.
He said 25% of Toll buyers are still paying cash and that 30% of their communities were able to raise prices in the quarter. Earlier on the call, he noted that buyers spent an average of $207,000 on upgrades, options, and lot premiums.
Do you consider Toll a competitor in your market? Why or why not?
—Pauline Hammerbeck
