Real Estate

Market volatility not touching housing: Toll Brothers CEO

Toll Brothers CEO: Highest sales we've ever had

Investors have been facing an uphill battle with equity markets as fears of an impending recession linger. However, the housing market — which suffered the most during the 2008 financial crisis — is unaffected and on its way to recovery, Toll Brothers' CEO, Douglas Yearley, told CNBC on Tuesday.

Still, market watchers remain concerned that there may be slowing growth in the luxury market. While Yearley acknowledged those concerns, he said on "Closing Bell" that the company's business is good.

The largest U.S. luxury homebuilder on Tuesday reported an 8.8 percent rise in fiscal first-quarter revenue as it sold homes at higher prices.

The company's revenue climbed to $928.6 million in the three months ended Jan. 31, from $853.5 million a year earlier. The company's net income, however, fell to $73.2 million from $81.3 million.

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Toll Brothers, whose homes can cost more than $2 million, said orders rose 17.6 percent to 1,250 homes. "Our sales right now are at the highest price point we ever had," Yearley said.

"Overall people feel good; it's just taking a little bit longer for them to step up and make the buying decision," he noted.

The Federal Reserve Bank of New York's 2015 fourth-quarter household debt and credit report showed mortgage delinquencies continued improving for the fifth year in a row. The bank said that mortgages balances were roughly flat for the quarter. At the same time, aggregate household debt balances saw a slight increase. Still, household debt remains 4.4 percent under the 2008 third-quarter peak of $12.68 trillion.

Yearley says that the real estate company does not foresee a recession.

"The housing market is in good shape and what's going on in the equity market and the global economy — we are just not seeing," he said.

— Reuters contributed to this report.