Toll's Signed Home Contracts Rise 3%

HORSHAM, Pa. -- Toll Brothers (TOL Quote) said 3% more homebuyers signed contracts in its fiscal third quarter, the first annual increase in four years.

The luxury homebuilder said Wednesday it sold 792 homes, generating $461.3 million in revenue for the three months ended July 31. Revenue was down 42% from the same period last year because home prices are declining and Toll has fewer communities around the country.

Compared with the second quarter, signed contracts soared 44% and only 9% of buyers backed out -- the lowest cancellation rate in three years.

"Although some of our markets are still stuck in the mud, many are improving," Robert Toll, the company's chairman and CEO, said in a statement. He also noted that buyers are increasingly confident.

Toll Brothers will release final quarterly results on Aug. 27, and analysts surveyed by Thomson Reuters expect a loss of 32 cents a share on revenue of $377.1 million.