What Is Toll Brothers' Best Market? (TOL)

Earlier this month, Benzinga interviewed Marty Connor, the Chief Financial Officer of Toll Brothers Inc. TOL. During the interview, Connor spoke about the firm's best market. “New York urban is our best market right now,” he said. “It's a market where we have some limited pricing power and we can raise prices on occasion and reduce incentives. We have certain communities around the country where we have the right product at the right price in the right location, and they move pretty well.” Connor says that Toll Brothers has a community in Naval Square (in Philadelphia urban) that has sold more than 50 units in the last 12 months. “We have another community that we opened six months ago and have sold nearly 30 units already,” Connor boasted. “That gives us optimism that if we have the right product at the right price in the right location, that product will move regardless of the level of confidence or economic times we find ourselves in.” Overall, 60% Toll Brothers' business is between Boston and northern Virginia, “and that is a market that can get super hot at the height of it and then get super cool in the retreat,” Connor said. “Right now, it's doing fine. Between Houston and Dallas, we have another 10% of our business and that market has held up as well. Some of the western state markets, with the exception of California, where we are really just coastal and around the bay, we're comfortable with that market. “But Arizona, Las Vegas, and Nevada, and the Midwest, they have a long way to come back from.” To hear more from Toll Brothers' Chief Financial Officer, don't miss Benzinga's full interview with Marty Connor.