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Daily Real Estate News  |  July 12, 2007  |   Toll Bros. CEO Sees Quick New-Home Recovery
Fortune magazine recently interviewed Robert Toll, founder and CEO of the luxury home builder Toll Brothers. As usual, Toll was blunt in his responses.

Fortune: How bad is it?

Toll: I don't see the market getting better until, at the earliest, April of 2008. But I do think that when a recovery occurs, it will be much quicker than it has in the past because of pent-up demand. You've got decent job growth, low unemployment, low interest rates, great corporate earnings reports, and tons of money being created and sloshing around the world.

Fortune: Why are builders offering incentives instead of just dropping prices?

Toll: When you start selling homes for $400,000 that were $500,000, all the homeowners who paid $500,000 are going to be in your sales office complaining, saying, "Why are you doing this to me? Why don't you just put a sign on my lawn saying, 'I'm a schmuck?'" So you've got to give incentives instead of lowering prices because you don't want to be rude, crude, and barbaric to your clients.

Source: Fortune, Jon Birger (07/23/2007)

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