In 2022 when the demand for new homes slowed down, Toll Brothers, headquartered in Fort Washington, adopted a new strategy that has led to record sales, writes Paul Schwedelson for Philadelphia Business Journal.

CEO Douglas Yearley Jr. says the company’s record-setting fiscal third-quarter sales are proof that the strategy was successful.

“Our houses are big, they’re complicated. They have a lot of upgrades and features, and they take a while to build. We’re not giving them away. We’re not going to chase the bottom,” he said on a Toll’s earnings call with investors.

“…I think the strategy has worked. We will continue with that strategy if [demand slows again].”

Toll Brothers had a third-quarter record $2.7 billion in home sales revenues, which was up 19% from the same period the year before.

Yearley attributes the success to the company’s strategy to maintain prices. Toll Brothers has also been able to capitalize on the low inventory of resale homes because homeowners who have low mortgage rates are reluctant to sell. This means there is a greater demand for new construction.

Read more about Toll Brothers’ winning strategy in the Philadelphia Business Journal.

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