BofA Builders Conference: Toll Brothers On New Sales Numbers
Bob Toll doesn't buy the numbers from Commerce.
The CEO of Toll Bros. says there's no way new home sales are running as high as the census bean counters claim because they don't include cancellations which are still running around 30 percent.
He thinks holding onto land is a good idea because it puts him at a competitive advantage when things finally do turn around.
Interesting note on gas prices: most of the builders so far have downplayed the effects, but Toll says its hitting his subcontractors hard and driving up the prices of petroleum-based materials, like plastic piping.
During the lunch panel, John Burns, a well known consultant to many investment banks, says buyers are really beginning to reject new communities that are far from business district and public transportation. The fact that these homes may be far cheaper now than any increase in gas prices doesn't appear to change the emotional mindset.
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