US Home Builder Reports Sales, Profit Jump

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Luxury home builder Toll Brothers, one of the bellwethers of the U.S. home market, reported a 46 percent increase in profit in the first quarter, as demand and prices increased.

Net income for the quarter was $24.7 million, compared with $16.9 million in the same quarter a year ago. The number of homes sold increased to 894 units from 671 a year ago.

The average price of the new homes was $577,000, compared to a $557,000 a year earlier.

Toll Brothers' results provided more evidence of the strength of the U.S. home recovery, which has seen prices steadily increase in recent months in markets around the country. Data showed housing starts had slowed in April, but the Toll Brothers results show that sales and interest are strong.

"Buyers who have been on the sidelines for six years are jumping in," Toll chief executive Douglas Yearley said in a statement.

Toll said the company has signed contracts for 1,753 for a value of $1.19 billion, up 1,290 and a value of $754.7 million a year ago. Both numbers were the highest since 2006, according to Bloomberg.

"Demand accelerated significantly this quarter," Mr. Yearley said in the statement. "One year ago we were somewhat reluctant to raise home prices for fear of crimping demand. Now we are finding that in many markets as prices increase, a sense of urgency takes hold and demand continues to rise."