Bolstered by an encouraging outlook for new home demand, luxury builder Toll Brothers said sales will begin in the fall at another master-planned community in Colorado.
Riano Ridge in Loveland features townhouses and single-family residences priced from the $500,000s.
Toll and other builders nationwide are benefiting from a constrained supply of existing houses for sale due in part to owners who are locked into historically low mortgage rates and unwilling to move. That's raising demand for new houses, even with the persistently high mortgage rates.
Miami-based Lennar reported an increase in first-quarter sales, while M/I Homes of Columbus, Ohio, achieved first-quarter records in completions, revenue and income.
Toll raised its full-year revenue and earnings guidance after generating $2.65 billion in fiscal second-quarter sales, an increase from $2.49 billion in the same time last year.
Demand probably will remain strong, even if elevated mortgage rates fall and the supply of existing homes increases, CEO Douglas Yearley Jr. said during a May conference call with analysts. Yearley added that new homes have more modern features and fewer problems than existing homes.
The builder said it operated 386 communities at the end of the second quarter and remains on target to hit its year-end guidance of about 410 projects, which would be a 10% increase from fiscal year 2023.
"Looking forward, we continue to expect community count growth to help drive results in fiscal 2024 and beyond," Yearley said on the conference call.
Riano Ridge townhouses and single-family units will range from 1,673 to more than 4,800 square feet. Buyers will be close to shopping, dining and entertainment while living an hour from downtown Denver, Reggie Carveth, Toll's division president in Colorado, said in a statement.
The company has more than 25 developments in Colorado. Its other projects in Larimer County include Toll Brothers at Heron Lakes and Toll Brothers at Timnath Lakes.
Toll, based in Fort Washington, Pennsylvania, ranks as the ninth-largest builder nationwide based on 9,597 closings in 2023, according to Builder magazine.