Toll Brothers, Inc. (TOL - Free Report) , a leading homebuilder in the US, recently contracted to acquire 387 lots at Anthem Ranch in Denver, CO. Anthem Ranch will have 1,700 single family homes constructed under Toll Brothers' brand Active Living.
The recent acquisition of lots signifies an expansion of the active-adult Active Living brand to the western markets of U.S. The prices range from low $300s to upper $400s.
The model home park is expected to be complete by Jan 2014 and the company expects to open it for sale in May 2013. These homes are targeted toward residents aged 55 years and older. The residents can enjoy easy access to facilities like fishing, hiking, shopping centers and restaurants. They can choose from 12 to 15 floors plans with spacious rooms and a living space.
The rising demand for new homes has led to a favorable situation in the housing market, where inventory levels are dropping and prices are moving up. As such most home building companies are constructing increased number of new homes in order to maintain the required level of inventory to meet growing demand.
Homebuilders like Toll Brothers with significant land positions, broad geographic and product diversity, and better capital positions are expected to benefit the most as market conditions recover.
Toll Brothers expects to end fiscal 2013 with 225 to 255 selling communities. The community count is expected to grow thereafter in 2014.
Toll Brothers carries a Zacks Rank #3 (Hold).
Other stocks in the homebuilding sector that are performing well and deserve a mention include NVR Inc. (NVR - Free Report) with a Zacks Rank #1 (Strong Buy), and Consorcio ARA, S. A. B. de C. V. and Gafisa S.A. both carrying a Zacks Rank #2 (Buy).