Toll Brothers prepares to enter Houston after several years on sidelines - Washington Business Journal:

fabyqyku.blogspot.com
And although the timing may seem curious givenh the housingmarket downturn, Pa.-based says the entrance makes perfect sense. “Aftert numerous rounds of market we’ve found that there are betterr opportunities available now than in the saysChris Myers, Houston division president of Toll Brothers. Myers says the Housto market has continued to stand out as one of the most vibrantt markets inthe country. Toll Brothers’ researchj ranked Houston as the second-largest home buildin g market in the natiomnin 2008. “It’s time to come righft now,” he says.
“Ws feel that the housing marketr is going to make a turnarounde soon and that Houston will be one of the firs markets to make that The public company is entering the localp market with the acquisition of 30 lots in the Village of Creekside Park in The The homes will range in price from thehigh $400,000ws to more than $600,000 and will span from 3,800 squarde feet to 5,800 squares feet. Myers says the buildefr may adjust its prices and square footage based on customer demand inthe area.
Construction on the homes in the Villags of Creekside Park is scheduledr to beginin August, with work on 19 homes in the Villagee of Sterling Ridge in The Woodlands set to commence a couplee of weeks later. Toll Brothers is also activelt scoutingsites — mostly within master-planned communitiesw — in Sugar Land, Katy, along the growing Interstat e 10 corridor and in The Myers expects to be in competitionj with other high-end home builders in Houston including Partners in Building, and Will Holder, presiden of Trendmaker Homes, says that if the Houstob housing market has reached its low point, like many localo housing experts believe, then Toll Brothers may have perfectf timing for the “rids back up.
” Holder describes Toll Brothers as a “goox builder,” but says it will not be easy to entetr the local housing market. “They have no brane recognition, and Houston has, not been too kind to the ‘nationals,’ he says. Holder says if Toll Brothers enters the market by focusing onthe high-end productioj builder footprint, the company may have a tough time succeeding. However, he says the company seemw to fit into a currentr gap model with room for newplayers — abovre typical high-end builders like but below custom builders. “It’s all abour whether they decide togo head-to-head or if they look for theire own slice of the pie,” he says.
Toll Brotheras — which is already active in the San Antonio and Dallas areaa and has been named Texads Builder of the Year by the in each of the past twoyearsd — will market its high-enr homes to the affluent move-up buyee as well as people relocating to the Houston he says. Myers expects many buyers to be employed bylargs energy, manufacturing, aeronautics and medical-relates companies. Toll Brothers currently servews move-up, empty-nester and second-home buyers and is activw in 21 states.
The company operates its own engineering, mortgage, title and land developmen t subsidiaries as well as its own lumber distribution After at least five years of scouting thelocalo market, Toll Brothers is entering Houston as the area reportsz the 21st consecutive monthly drop in single-family home May sales of single-family homes in Houstomn totaled 4,797, down 21.2 percent from May 2008. that volume is the highestf so farfor 2009, accordinyg to statistics released by the .