According to Reuters, while most American homebuilders experienced a sudden drop in demand from first-time homebuyers during a quarter significantly impacted by the government shutdown and a two-year peak in interest rates, Toll Brothers (TOL) managed to overcome.
The country's largest builder of luxury homes is expecting a 65 percent jump in revenue in its just-ended fourth quarter that would take it across the $1 billon threshold for the first time since 2007.
For Toll Brothers, which targets a different demographic with homes that can retail for up to $2 million, the change in consumer sentiment has had less of an impact.
"You have a lot more cash, so the luxury end of the market is not as fickle," said David Williams, who follows U.S. builders for Dallas-based brokerage Williams Financial Group.
