"Our buyers don't have mortgage problems; 20 percent are all cash. Those that get a mortgage put 30 percent down," Douglas Yearley said. "Their decision to buy is more of a discretionary decision, it is more emotional, [and] it is based on confidence ... we love our niche."
The home builder also predicted its home prices would stay resilient for the rest of the year, averaging $690,000 to $720,000 for all homes delivered in 2014.
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"Current demographics seem to suggest that new home sales should pick up. If the tight supply bumps into increasing demand, prices could rapidly rise," Toll Brothers Chairman Robert Toll said in a statement Wednesday.
Home prices in the nation's largest cities are already moving higher. Single-family home prices rose 0.9 percent in March on a seasonably adjust basis, according to the 20-city Case-Shiller home price index.