UPDATE 1-Higher home prices boost Toll Brothers' revenue
* Revenue rises 24 pct to $689.2 mln
* Average selling price rises 13 pct to $651,000
* Orders rise 26 pct
Aug 21 (Reuters) - Toll Brothers Inc, the largest U.S. luxury homebuilder, reported a 24 percent increase in revenue as it sold more homes at higher prices, showing signs of a recovering U.S. housing market.
Average selling price rose 13 percent to $651,000 for the third-quarter and orders increased 26 percent to 1,405 units.
"We believe the recovery is real and we are in the early stages of the rebound," Chief Executive Douglas Yearley said.
The company said its average sales contracts per community were at levels last seen in 1997-1998.
Toll, which typically targets affluent customers who make at least $100,000 a year and have spotless credit records, has not been hit by higher mortgage rates, which have dampened demand for some of its peers.
Backlog rose 56 percent to 4,001 units and its value jumped 75 percent to $2.84 billion.
Toll forecast revenue between $2.46 billion to $2.62 billion and total home deliveries between 3,925 and 4,125 units for full year 2013.
Net income fell to $46.6 million, or 26 cents per share, from $61.6 million, or 36 cents per share, a year earlier.
Revenue rose 24 percent to $689.2 million.
Shares of the company have fallen more than 20 percent after touching an 8-1/2-year high in May. They closed at $31.64 on the New York Stock Exchange on Tuesday.