New Single Family Home Sales Surged, Toll Brothers high-end home builder, Back to School
August 23, 2016
Tuesday – August 23
July new single-family home sales surged to a nine-year high due to a strengthening job market and ultra-low home loan rates. New Home Sales rose 12.4% to an annual rate of 654,000, above the 580,000 expected, while June was revised lower to 582,000 from 592,000. Sales are up 31.3% from July 2015. Sales were led by a whopping 40% surge in the Northeast. The median price for a new home slipped 0.5% from a year ago to $294,600. The housing sector continues to be a bright spot in a somewhat slowing U.S. economy.
Luxury home builder Toll Brothers reported earnings on Tuesday showing that revenues beat expectations on higher home sales. Revenues surged 23.5% to $1.27 billion, above the $1.25 billion expected while earning $0.61 per share, which was in line with estimates. Toll Brothers new orders rose 18% to 1,748 units. The home builder now expects fiscal year 2016 deliveries of 5,900 to 6,200 homes at an average price of between $840,000 and $850,000 for each unit.
It’s that time of year again when parents and guardians rejoice as September draws near … Back to school! This year brings a slightly different slant to purchasing supplies. Expect fewer discounts and a bigger bill for the kids on their way back to school. Consumers should expect to shell out an average of $674 per household this season, up 7% from last year according to the National Retail Federation. Back-to-school is the second biggest shopping period for retailers outside of the holiday shopping season.
