SANTA ANA, Calif.--(BUSINESS WIRE)--First American Financial Corporation (NYSE: FAF), a leading global provider of title insurance, settlement services and risk solutions for real estate transactions, today released the October 2021 First American Real House Price Index (RHPI). The RHPI measures the price changes of single-family properties throughout the U.S. adjusted for the impact of income and interest rate changes on consumer house-buying power over time at national, state and metropolitan area levels. Because the RHPI adjusts for house-buying power, it also serves as a measure of housing affordability.

Chief Economist Analysis: Real House Prices Increased 19.6 Percent Year Over Year

Affordability sank to its lowest level since 2008 in October, as two of the three key drivers of the Real House Price Index (RHPI) swung in favor of reduced affordability relative to one year ago. Higher mortgage rates and record year-over-year nominal house price growth triggered a nearly 20 percent jump in the RHPI (rising RHPI values indicate declining affordability), said Mark Fleming, chief economist at First American. The soaring nominal house prices and uptick in mortgage rates swamped any affordability gains from the 3.6 percent yearly increase in household income. Since we know real estate is local, house-buying power and nominal house price gains vary by city, begging the question, where is affordability declining the most?

The Five Cities Where Affordability Declined the Most

Affordability declined year over year in all of the markets we track, said Fleming. The five markets with the greatest year-over-year decline in affordability were:

1.) Phoenix (+33.7 percent),2.) Charlotte, N.C. (+32.3 percent),3.) Tampa, Fla. (+30.9 percent),4.) Jacksonville, Fla. (+29.3 percent),5.) Memphis, Tenn. (+27.5 percent).

In October, mortgage rates increased 0.2 percentage points relative to one year ago, which reduces affordability, all else held equal. Higher mortgage rates decrease affordability equally in each market as mortgage rates are generally similar across the country, said Fleming. However, household income growth and nominal house prices vary by market, creating the market-level variance in affordability. Faster nominal house price appreciation can erode, or even eliminate, the boost in affordability from higher household income.

Phoenix suffered the greatest year-over-year loss in affordability in October, mostly due to the nearly 34 percent annual increase in nominal house price growth. Robust investor activity and strong net-in migration to Phoenix has fueled soaring demand for homes against a limited supply of homes for sale, said Fleming. In Charlotte, N.C., household income declined modestly, meaning all three key drivers of the RHPI dragged affordability down in October relative to one year ago. The importance of household income becomes apparent when comparing the decline in affordability in Charlotte to Tampa. While annual nominal house price appreciation in Tampa outpaced that of Charlotte, rising household income tempered the decline in affordability. Ultimately, nominal house price appreciation overwhelmed any affordability lift from house-buying power in all three of these markets.

How Will Affordability Impact the Housing Market in 2022?

If affordability falls too far, some home buyers on the margin will pull back, prompting fewer bidding wars and causing house prices to moderate. In the near term, a labor market characterized by high demand, but limited supply means upward pressure on wages as employers compete to attract employees. While mortgage rates are expected to increase in 2022 as the economic recovery continues, consensus expectations still put them below 4 percent, said Fleming. For some home buyers, as the big short in housing supply continues, it will become impossible to keep up with double-digit nominal house price growth, especially in a rising-rate environment. The challenge for home buyers in 2022 will mirror 2020 and 2021 you cant buy whats not for sale even if you can afford to.

October 2021 Real House Price Index Highlights

October 2021 Real House Price State Highlights

October 2021 Real House Price Local Market Highlights

Next Release

The next release of the First American Real House Price Index will take place the week of January 24, 2022 for November 2021 data.

Sources

Methodology

The methodology statement for the First American Real House Price Index is available at http://www.firstam.com/economics/real-house-price-index.

Disclaimer

Opinions, estimates, forecasts and other views contained in this page are those of First Americans Chief Economist, do not necessarily represent the views of First American or its management, should not be construed as indicating First Americans business prospects or expected results, and are subject to change without notice. Although the First American Economics team attempts to provide reliable, useful information, it does not guarantee that the information is accurate, current or suitable for any particular purpose. 2021 by First American. Information from this page may be used with proper attribution.

About First American

First American Financial Corporation (NYSE: FAF) is a leading provider of title insurance, settlement services and risk solutions for real estate transactions that traces its heritage back to 1889. First American also provides title plant management services; title and other real property records and images; valuation products and services; home warranty products; banking, trust and wealth management services; and other related products and services. With total revenue of $7.1 billion in 2020, the company offers its products and services directly and through its agents throughout the United States and abroad. In 2021, First American was named to the Fortune 100 Best Companies to Work For list for the sixth consecutive year. More information about the company can be found at http://www.firstam.com.

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Affordability Falls to Its Lowest Level Since 2008, According to First American Real House Price Index - Business Wire

OPEN SUN. 1:00-3:00--PRICE ADJUSTED!!!--Character, charm & loads of living space waiting for you in this turn of the century 3-story Dogtown home. Scenic stained glass windows , pocket doors, fireplaces, hardwoods, large windows & wrap-around front porch are just the start. First floor features beautiful original wood staircase, stunning stained glass windows w/ landscape motif, tall ceilings. Foyer leads into large living room featuring oversized period windows, fabulous millwork, hardwoods & wood burning stove. Dining room features pocket doors, hardwoods, second fireplace w/original mantle, amazing period millwork, opens to kitchen. Kitchen w/42" cabinets (some w/glass doors), breakfast bar, pantry, eat in kitchen leads to back deck. Half bath on first floor too! Upstairs-4 bedrooms plus an office, utility room, 2nd floor deck, hall bath, loads of living space. Walk to Olympia, Pan Olive, close to shopping, Hwy 64 wonderful waiting for your TLC & design touches...take a look today!

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Historical homes you can own in the St. Louis area - STLtoday.com

This exceptional, custom built home, located in the desirable Trotter Ridge Subdivision, is astonishingly LISTED UNDER APPRAISED VALUE!! This lovely home presents a fantastic flow that highlights the open floor plan. The welcoming family rm w/gas fireplace is designed to be the heart of the home & is open to the breakfast & kitchen area, complete with sizable pantry, SS appliances & ample counter space. On the 1st floor is a roomy, yet intimate dining rm, and a room perfect for an office or formal living area. Enjoy your morning coffee on the all-season enclosed porch. Upstairs, the primary suite is truly a retreat with an extra cove that could be used as a 2nd walk-in closet or reading nook. Master ba features a dbl bowl vanity, soaking tub, oversized shower & walk-in closet. Upstairs laundry rm, two add'l spacious br's and bonus rm. Freshly painted & pre-wired for generator. New Roof 2020, New Upstairs HVAC 2019, water softener/filtration system, & Home Warranty! See agent remarks.

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Expensive homes on the market in Greensboro | Local | greensboro.com - Greensboro News & Record

The combination of first-rate knowledge of the build process along with high levels of customer service are the solid foundations for the specialised services that ICW offers. From new builds to renovations, large or small scale, we evaluate projects carefully to ensure the right service is recommended, providing total peace of mind for all parties involved.

As well as delivering A-rated warranties, ICW offers building control services to clients in England and Wales, presenting one point of contact onsite for the duration of a project.

ICW has built a reputation for the personal touch of our customer service. We dont just say were customer-focused, value-driven and quality-led. We genuinely are, every step of the way. We work hard to ensure that we can meet and exceed our clients expectations and continue to push ahead with new customer service initiatives. As such, this year ICW has launched a new client portal for warranty clients and brokers

With access to the ICW client portal, clients and brokers will have an overview of current projects to manage site paperwork, view survey reports and book surveyor visits with ease. The portal is accessible via smartphone, tablet and desktop, so that clients and brokers can log in to securely access project information from any location.

Introducing our client portal is a proactive move that will help empower our clients to access the information they need at a time that suits them.

Aaron McCarten, chief operating officer at ICW Group, said: There is a growing demand for self-service tools that help to streamline the customer experience.

We understand that digital is now an essential means of doing business and we have developed this bespoke online portal to support our clients and brokers, offering an enhanced, efficient and effective service. This is just one of the many positive developments that we are looking forward to this year.

2021 has seen many housebuilders returning to pre-covid levels of operations, buoyed by a stable demand for new homes and the governments post-pandemic recovery drive for the construction industry. Continued support for the sector, including funding for modern methods of construction, will ensure that there is a focus on building good quality sustainable homes that people want to live in for the future.

There has been a marked increase in the number of residential developments adopting modular or offsite methods of construction across the UK. MMC is becoming more standard on build projects due to the fact that it offers faster build times with potentially increased value, helping to deliver better quality, more affordable homes.

Indeed, there is a reported growing demand from homebuyers for greener, more sustainable homes, and using MMC can help achieve such aims. As plans are approved for modular developments, this provides a welcome boost in confidence throughout the supply chain for those involved in the manufacture or supply of MMC materials and systems.

ICW Group supports housebuilders by providing a product approval service that will smooth the way for using MMC on build projects. The ICW approval process has been designed to assist manufacturers through a framework of inspections to gain product approval, ensuring that architects and specifiers can be confident about the quality and suitability of products used onsite.

ICW Group is committed to working in partnership with builders, developers, brokers and homeowners to provide excellent warranty and building control services with enhanced customer service, from initial enquiry through to project completion. To find out more about the range of services that ICW Group offers, please visit i-c-w.co.uk or get in touch on info@i-c-w.co.uk.

ICW Group

Tel: +44(0) 208 0991 393

info@i-c-w.co.uk

http://www.i-c-w.co.uk

Twitter:ICW_GroupLTD

Please note: this is a commercial profile.

Link:
ICW Group supporting clients every step of the way - Planning, BIM & Construction Today

By MARIE NESMITH

With a perfect score of 30, Carter and Keri Smith captured the Cartersville Dances With the Stars Judges Choice Award. The competition, which helped raise funds and awareness for Good Neighbor Homeless Shelter and the Cartersville/Bartow County school systems homeless education programs, was presented at the Clarence Brown Conference Center Saturday.

I think we were both in disbelief and utter shock, Mrs. Smith said, about their winning performance. Carter was 100% confident they had made a mistake in asking us to participate. Out of all the many special people around this community, choosing us to participate was truly an honor.

Performed to a 1950s song mix, the Smiths swing medley was choreographed by Milly Crenshaw with Celebrity Ballroom Dance Studio. The Cartersville residents were married in 2014 and share five children ranging in age from 18 to 21.

Carter and I would like to think we are fun, upbeat folks to be around, so to reflect our personalities, we wanted something fun and fast, said Mrs. Smith, a senior account executive at Choice Home Warranty. We then decided on the 50s theme. We contacted a music professional to mix a selection of songs, presented it to Milly and her first response was wow, that has a lot of energy.

So, from there we were up for the challenge of knowing that was her nice way of saying this may be too fast or hard for you to dance to. Carter had no dancing background prior to this event and he says he still does not qualify to claim any. He says, thank God for Milly, our patient, open-minded and uplifting coach. Milly deserves a medal or something.

In its ninth year, Cartersville Dances With the Stars generated a little more than $208,000. In addition to sponsorship packages and ticket sales, the event raised funds by having competitors collect money from the public.

We are absolutely thrilled with how the 2021 Cartersville Dances With the Stars event turned out, Good Neighbor Executive Director Jessica Mitcham said. In a year full of challenges, restrictions in number of attendees, changes in how couples fundraised prior to the event and health precautions, we are enormously thankful for all the hard work our eight couples and their professional coaches put into making this event a huge success. In total, after expenses were paid, we raised just over $208,000 to help support the homeless education programs in our school systems and the Good Neighbor Homeless Shelter.

Formed in 1996, the Good Neighbor has served more than 8,400 people since its inception. In addition to the Transitional Housing program, the nonprofit now features two shelters and a street outreach.

While they are housed, Good Neighbors shelter guests are required to find a job within four weeks, and the shelters staff helps them establish savings, focus on problem-solving skills and chart out future housing options.

Cartersville Dances With the Stars is critical in our work to remind Cartersville and Bartow County of how many children and families rely on the services provided by the schools and Good Neighbor to support struggling children and families, Mitcham said. We are so grateful to all eight couples who really embraced rallying these causes this year, raised funds to support them and danced to entertain our guests.

As Mitcham noted, this years Cartersville Dances With the Stars benefit featured eight married couples. Along with the Smiths, the competition featured Greg and Kim Free, Ahmad and Tamara Hall, Billy and Misty Jones, Bruce and Tracy Mulkey, Jay and Cait Parrozzo, Zach and Alexis Pritchard, and Josh and Lori Shook.

The Pritchards took home the Peoples Choice Award for the most funds raised with nearly $50,000.

Married since 2012, the couple has two children: Avery Claire, 6, and Page, 4. Zach is the owner of Pritchard Injury Firm and Alexis is a school counselor at Cartersville High School.

We are so thrilled to have accomplished exactly what we came to do raise money for the students and families in our community, Mrs. Pritchard said. These programs can't function without the selfless donations from individuals and businesses in our area. And these students can't perform at their best every day if they're hungry or homeless.

Along with learning their dance routine, the couple was busy raising funds in the months leading up to the competition. Their largest benefit, the Home for the Holidays golf tournament, was postponed due to snow and will now be presented March 22.

Zach and I want to bless others as we have been blessed, Mrs. Pritchard said. God wants us to care for others and look after all our neighbors we're hardly scratching the surface, but we had a personal goal to raise as much money as we could.

What's wild is that we found even in this pandemic and time of uncertainty, citizens of Bartow County still wanted to give. We had people call us to ask what they could do above and beyond what was asked of them. We truly believe Cartersville is the best place on Earth.

With a nod to their teenage years, their cha-cha dance to Want to Want Me/I Want to Dance With Somebody was choreographed by Bobbie Bruton.

I knew from the beginning that I wanted to channel our inner cheerleader and pitcher from our high school days, Mrs. Pritchard said. Luckily, a few of the members of the percussion section of our CHS marching band agreed to participate and put on the show of a lifetime.

Our coach, Bobbie Bruton, wanted to be a little more technical with dance moves this year, so she chose the cha-cha and my only request is that we dance to Whitney Houston. Bobbie choreographed the most amazing routine and Zach and I can't stop watching the replay of that night. The routine, the costumes, the audience, the judges it was definitely a night to remember.

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'Night to remember': Cartersville Dances With the Stars tops $208000 - Daily Tribune News

The renovation process, which used to rely on relationships and referrals and old-fashioned direct sales, is now modernized and made more transparent, as people can find a great contractor through platforms, social media, and customer reviews. Some home improvement contractors might not like the way that new discovery methods empower people, but those who are marketing-savvy or customer-focused can adapt and thrive. And for people who need the services of contractors regularly -- either for rental properties or fix and flips -- its better for business to be able to expand your network with just a few keyboard clicks.

These platforms, whether they function as online networking hubs or vendor- matching services, are well known by now, and most people have spent some time on one or more while researching costs and contractors. Each of them is a little different: Houzz is a portfolio aggregator and networking hub, while HomeAdvisor is an information resource that leads into a direct-matching/lead-gen funnel for people to connect with multiple contractors. HomeAdvisor is great for gleaning info on the bathroom remodel or kitchen remodel process before contractor-matching. Houzz can lead you to the perfect interior designer and architect -- as well as provide visual inspo for a remodeling job. For smaller projects that may not require a licensed contractor, theres Thumbtack and Handy.

The company generating the most buzz in this space currently is Porch (NASDAQ: PRCH), which recently went public via a SPAC deal and is notable for offering access to a variety of services. Beyond the home-construction trades, Porch is a platform for homeowners to connect with cable TV providers, movers, and home security companies.

For those who still trust recommendations from neighbors and friends but dont necessarily want to make a bunch of calls to get recommendations, Nextdoor and Facebook (NASDAQ: FB) have become the easy way to get word-of-mouth referrals, or, as the case may be, do hyper-local marketing. Nextdoor just introduced a premium service for local contractors, and Facebook is known as the most effective platform for targeted SMB advertising. Facebook groups remain a very useful localized tool for getting real-life reviews on how someone behaved on a job site, whether they completed a project under or over budget, etcetera. If you find a reputable contractor on a Facebook group, you know theyre worth contacting, because the key tenets of current-day Facebook are: nobody agrees, and everyone has a complaint.

The easiest way to be sure that youre hiring someone whos legitimate, licensed, and bonded is to go to the local chapters of trade associations, such as Builders Association or Latin Builders Association or the National Association or Plumbing Contractors Association. The local Chamber of Commerce can also be a good place to ask if you live in a place either too small or too large for trade associations to be helpful.

Although the true usefulness of a home warranty is forever debated with no clear answer, one reason a lot of homeowners have them is because home warranty companies have networks of numerous contractors in all the most common specialty trades. The thing is, these companies pay the contractors less, so theyre not anyones favorite way to get a job. If you do find a good contractor through a home warranty company, hang onto their information in case you need them to do more work for you directly later down the line.

Whether you find them through a platform or a social media group or through old-fashioned word of mouth, there are several steps you should take to vet a prospective contractor before hiring them.

Have a look through previous jobs and talk through their process. Make sure they can clearly explain the work that was done, as this will demonstrate that they were hands-on with the job.

This is a must for any professional contractor, but nonetheless, dont assume. Ask for proof of liability insurance (and ideally, also property damage coverage and workers compensation). Also check to make sure their license is current -- and that its theirs. The system of RMOs ("responsible managing officer," the one with the license) and RMEs ("responsible managing employee," who borrows the license for a kickback to the licensed contractor) can be abused sometimes, and its safer just to know that the person youre speaking to has a license. Even if they do intend to hire workers and subcontractors, they should still be engaged on site at the beginning.

You may end up catching previous business bankruptcies, small claims against the prospective contractor, complaints, or even lawsuits. The construction industry draws all types, and jobs that arent professionally managed are especially magnets for dubious characters. A final deep dive on Google might save you many months of stress.

When you get to the top one or two candidates, this is standard.

Finding a reliable contractor has always been such an intimidating and hazard-prone process that many homeowners try to DIY projects or put them off indefinitely. Not only is home-improvement work expensive, but contractors have a reputation for setting their own terms once the job has begun. The modern discovery and vetting tools that exist today put a lot more of the power back in homeowner hands at the early stage -- and hopefully thats enough to start your project on the right track.

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How to Find a Contractor for Home Renovations - Motley Fool

Real estate technology and services company Orchard announced Thursday its adding both home insurance and warranty services to its product offerings. The move comes on the heels of Orchard raising $69 million in funding with a stated goal to become the real estate industrys Amazon.

Court Cunningham | Photo credit: Orchard

Orchards home insurance and warranty services join its existing suite of products, which include a home loans division, title insurance and search tools, all integrated into its consumer-facing dashboard, which launched in September.

At Orchard, were radically simplifying the way people buy their homes, bringing the entire experience, from start to finish, into the 21st century, Court Cunningham, the CEO and co-founder of Orchard, said in a statement.

Cunningham added that Orchards customers have expressed a desire to integrate more parts of the homebuying process into the Orchard platform. Adding home warranty and insurance allows those consumers to have the option to get everything they need to buy a home with Orchard, according to Cunningham.

Orchards insurance offering isnt direct-to-consumer, rather the platform will allow consumers to find the plans that work best for their needs. Consumers fill out an online application within the Orchard platform and receive an email with a side-by-side comparison of options.

Through Orchards warranty platform, customers can buy a protection plan to shield them from many major expenses.

All of the services, as well as associated documents required, are all integrated within the Orchard platform, making tasks like providing proof of insurance so the home loan can close on-time more seamless, according to the company.

Orchard aims to serve dual-track consumers both buying and selling a home at the same time. The company operates in essentially three phases: a modern search platform, enabling customers to buy before they sell with a guarantee, and an all-digital close.

Orchard, which is headquartered in New York City, currently serves customers in Colorado, Georgia and Texas.

Email Patrick Kearns

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Orchard adds home warranty and insurance to product offerings - Inman

Today we are introduced to David Seruya, CEO of Total Home Protection. A Home Warranty company prized for its innovative solutions and excellent customer service. Continue reading to learn how this company was able to get ahead and become one of the most respected home warranty providers in the industry from the perspective of one of its leaders.

When did you get your start in the home warranty industry?

David Seruya: That would be in 2005. I was still working as a mortgage broker back then, but the company that I was working for had begun to decline. And, ultimately, before the year ended, it shut down completely and everyone was laid off.

Thankfully, a college friend of mine had also been looking to get into a new business at the time. So, we decided to partner up and work on this new venture of ours together. At that point, we honestly didnt know much about the home warranty service industry. But, we knew that it had some room for competition. And, there was little online about offering home warranty plans directly to consumers, so we saw an opportunity that we just could not miss. So, we took it. Knowing that it would allow us to get ahead of the competition and disrupt the industry from the very beginning.

And how did this first venture work out for you?

David Seruya: Success did not come easy, thats for sure. Despite our confidence in our plan to disrupt the industry with innovative marketing, we did not make a single sale for almost six months! Still though, rather than throw in the towel, we continued to push forward with a tentative but persistent trial and error approach to test our limits.

Personally, I find that this kind of approach is what allowed us to succeed in the end. You learn pretty quickly that, in business, if you want any kind of success, youll need to push forward despite the fear of failure. Because, as clich as it may sound, it is with these very failures that you will find a lesson learned.

Who is Total Home Protections ideal customer?

David Seruya: The ideal Total Home Protection customers are homeowners that are age 35+ with an annual household income worth around $150,000. Of course, we service homeowners of all ages and all budgets too. But, weve found it most successful to target those in this particular age and income bracket.

And what kind of benefits can your customers expect by signing up with Total Home Protection?

David Seruya: Total Home Protection offers home warranty plans that cover approximately 20 home appliances and systems. The coverage applies when they wear out no matter their age, make, or model. And, if we cant fix them, then well replace them with the exact model or offer an alternative solution if a complete replacement is not available.

For full transparency, covered items must be in good working condition when the coverage is activated, and there are dollar amount caps that may apply. In addition to this, Total Home Protection reserves the right to offer cashback in place of repair or replacements.

If youre a current or prospective home warranty policyholder, I recommend that you read our sample contract to make the most of your policy. There, youll be able to discover all the great benefits that our home warranty service has to offer.

How has Total Home Protection been doing in such turbulent times? And how have you dealt with any of the issues that occurred?

David Seruya: I believe that a lot of our success comes from our leadership team. No matter how crazy or incomprehensible the times were living in are, the THP leadership team is always innovating, implementing new technologies, and just growing along with whatever changes are happening in our economy.

What do you find most satisfying whilst working for THP in recent times?

David Seruya: We recently released our new proprietary CRM. It was outfitted with the latest AI technology to create a custom platform for THP policyholders that would allow us to reduce operation costs, generate sales, and provide insights as to how we can grow and improve from this point on. With this on our side, were more confident than ever to compete and stay ahead in such a competitive industry. This, as you can probably guess, is an incredibly satisfying experience.

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[Interview] How Total Home Protection Stays Ahead of the Competition in the Home Warranty Industry with CEO David Seruya - Seekers Time

LONDON--(BUSINESS WIRE)--The Product Warranty Insurance Market is poised to experience spend growth of more than USD 27.75 billion between 2020-2024 at a CAGR of over 4.40%. The report also provides the market impact and new opportunities created due to the COVID-19 pandemic. Request free sample pages

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SpendEdge's reports now include an in-depth complimentary analysis of the COVID-19 impact on procurement and the latest market data to help your company overcome sourcing challenges. Our Product Warranty Insurance Market procurement intelligence report offers actionable procurement intelligence insights, sourcing strategies, and action plans to mitigate risks arising out of the current pandemic situation. The insights offered by our reports will help procurement professionals streamline supply chain operations and gain insights into the best procurement practices to mitigate losses.

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Table of Content

Executive Summary

Market Insights

Category Pricing Insights

Cost-saving Opportunities

Best Practices

Category Ecosystem

Category Management Strategy

Category Management Enablers

Suppliers Selection

Suppliers under Coverage

US Market Insights

Category scope

Appendix

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COVID-19 Impact and Recovery Analysis | Product Warranty Insurance Market Procurement Intelligence Report Forecasts Spend Growth of Over USD 27.75...

FORT WASHINGTON, Pa., Dec. 07, 2020 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE:TOL) (www.TollBrothers.com), the nations leading builder of luxury homes, today announced results for its fourth quarter ended October31, 2020.

FY 2020s Fourth Quarter Financial Highlights (Compared to FY 2019s Fourth Quarter):

Full FY 2020 Highlights (Compared to Full FY 2019)

* All references to home sales gross margin, adjusted home sales gross margin and SG&A, whether for the fiscal fourth quarter, the full fiscal year or with respect to future periods, reflect a reclassification of third-party brokerage commissions from cost of home sales revenue to selling, general & administrative expense (SG&A) for all periods presented. The reclassification resulted in an increase of approximately 2 percentage points to home sales gross margin and adjusted home sales gross margin, and an increase of approximately 2 percentage points to SG&A as a percentage of revenue for all periods presented. For a detailed reconciliation of the impact of this reclassification, see the Form 8-K and related exhibits filed by the Company on December 7, 2020.

FY 2021 Financial Guidance:

Douglas C. Yearley, Jr., chairman and chief executive officer, stated: In these challenging times, our team delivered on all fronts in our fourth quarter, exceeding our expectations for sales, revenues, margins and earnings. I am tremendously proud of how we have adapted to a rapidly changing environment.

We are currently experiencing the strongest housing market I have seen in my 30 years at Toll Brothers and we continue to increase prices in nearly all of our communities as we focus on driving profitability and managing growth. The strong demand began for us in mid-May and has continued through today. In our fourth quarter, net signed contracts of 3,407 homes and $2.74 billion were the highest totals for any quarter in our history, up 68% in homes and 63% in dollars compared to one year ago. In FY 2021s first six weeks ended December 6, demand has remained very strong compared to one year ago, with our non-binding reservation deposits, which are a precursor to contracts, up approximately 48%.

We attribute the strength in demand to a number of factors, including historically low interest rates, an undersupply of new and resale homes, and a renewed appreciation for the home as a sanctuary. The work-from-home phenomenon is also enabling more buyers to live where they want rather than where their jobs previously required. And since most of our customers have a home to sell, the tight resale market gives them confidence they can sell their home quickly at an appreciated value that can then be re-invested in their new home.

The Toll Brothers build-to-order model is particularly well-suited to this moment as Americans place more importance on home than ever before. With the upgrades and choices we offer, our customers can personalize their homes to reflect their lifestyles with features such as home offices, fitness rooms, multi-generational living suites and stunning indoor/outdoor living areas.

With our highest year-end backlog in 15 years and continued strong demand, we expect to deliver the most homes in our history in FY 2021. In addition, our strong land holdings and presence in over 50 markets position us well for 10% community count growth by the end of FY 2021. Based on the pricing power that has accompanied our strong sales since May, we expect gross margin to improve over the course of the fiscal year as we deliver those homes. And as we continue to focus on more capital efficient ways to acquire and develop land, we expect improvement in our return on equity in FY 2021. With our well-located land holdings, luxury brand and distinctive home designs that appeal to move-up, empty-nester and affordable luxury home buyers, we are strategically positioned for continued growth in FY 2021 and beyond.

Toll Brothers Financial Highlights for the FY 2020 fourth quarter ended October31, 2020 (unaudited):

Toll Brothers financial highlights for the fiscal year ended October 31, 2020 (unaudited):

Additional Financial Information:

(1) See Reconciliation of Non-GAAP Measures below for more information on the calculation of the Companys net debt-to-capital ratio.

Toll Brothers will be broadcasting live via the Investor Relations section of its website, investors.TollBrothers.com, a conference call hosted by Chairman & CEO Douglas C. Yearley, Jr. at 11:00 a.m. (EST) Tuesday, December 8, 2020, to discuss these results and its outlook for FY 2021. To access the call, enter the Toll Brothers website, click on the Investor Relations page, and select Events & Presentations. Participants are encouraged to log on at least fifteen minutes prior to the start of the presentation to register and download any necessary software.

The call can be heard live with an online replay which will follow.

Toll Brothers, Inc., A FORTUNE 500 Company, is the nation's leading builder of luxury homes. The Company began business over fifty years ago in 1967 and became a public company in 1986. Its common stock is listed on the New York Stock Exchange under the symbol TOL. The Company serves first-time, move-up, empty-nester, active-adult, affordable luxury and second-home buyers, as well as urban and suburban renters. It operates in 24 states: Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, and Washington, as well as in the District of Columbia.

Toll Brothers builds an array of luxury residential single-family detached, attached home, master planned resort-style golf, and urban low-, mid-, and high-rise communities, principally on land it develops and improves. The Company acquires and develops rental apartment and commercial properties through Toll Brothers Apartment Living, Toll Brothers Campus Living, and the affiliated Toll Brothers Realty Trust, and develops urban low-, mid-, and high-rise for-sale condominiums through Toll Brothers City Living. The Company operates its own architectural, engineering, mortgage, title, land development and land sale, golf course development and management, and landscape subsidiaries. Toll Brothers operates its own alarm monitoring company through TBI Smart Home Solutions, a complete home technology division. In addition to providing security monitoring, TBI Smart Home Solutions offers homeowners a full range of low voltage options, allowing buyers to maximize the potential of technology in their new home. The Company also operates its own lumber distribution, house component assembly, and manufacturing operations. Through its Gibraltar Real Estate Capital joint venture, the Company provides builders and developers with land banking, non-recourse debt and equity capital.

In 2020, Toll Brothers was named Worlds Most Admired Home Building Company in Fortune magazines survey of the Worlds Most Admired Companies, the sixth year in a row it has been so honored. Toll Brothers has won numerous other awards, including Builder of the Year from both Professional Builder magazine and Builder magazine, the first two-time recipient from Builder magazine. The Company sponsors the Toll Brothers Metropolitan Opera International Radio Network, bringing opera to neighborhoods throughout the world. For more information visit http://www.TollBrothers.com.

Toll Brothers discloses information about its business and financial performance and other matters, and provides links to its securities filings, notices of investor events, and earnings and other news releases, on the Investor Relations section of its website (investors.TollBrothers.com).

Forward-Looking Statements

Information presented herein for the fourth quarter ended October 31, 2020 is subject to finalization of the Company's regulatory filings, related financial and accounting reporting procedures and external auditor procedures.

This release contains or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. One can identify these statements by the fact that they do not relate to matters of a strictly historical or factual nature and generally discuss or relate to future events. These statements contain words such as anticipate, estimate, expect, project, intend, plan, believe, may, can, could, might, should, likely, will, and other words or phrases of similar meaning. Such statements may include, but are not limited to, information and statements regarding: the impact of Covid-19 on the U.S. economy, the markets in which we operate or may operate, and on our business; our strategic priorities; our land acquisition, land development and capital allocation priorities; market conditions; demand for our homes; anticipated operating results and guidance; home deliveries; financial resources and condition; changes in revenues; changes in profitability; changes in margins; changes in accounting treatment; cost of revenues, including expected labor and material costs; selling, general, and administrative expenses; interest expense; inventory write-downs; home warranty and construction defect claims; unrecognized tax benefits; anticipated tax refunds; sales paces and prices; effects of home buyer cancellations; growth and expansion; joint ventures in which we are involved; anticipated results from our investments in unconsolidated entities; our ability to acquire or dispose of land and pursue real estate opportunities; our ability to gain approvals and open new communities; our ability to market, construct and sell homes and properties; our ability to deliver homes from backlog; our ability to secure materials and subcontractors; our ability to produce the liquidity and capital necessary to conduct normal business operations or to expand and take advantage of opportunities; and the outcome of legal proceedings, investigations, and claims.

Any or all of the forward-looking statements included in this release are not guarantees of future performance and may turn out to be inaccurate. This can occur as a result of incorrect assumptions or as a consequence of known or unknown risks and uncertainties. The major risks and uncertainties and assumptions that are made that affect our business and may cause actual results to differ from these forward-looking statements include, but are not limited to:

Many of the factors mentioned above or in other reports or public statements made by us will be important in determining our future performance. Consequently, actual results may differ materially from those that might be anticipated from our forward-looking statements.

Forward-looking statements speak only as of the date they are made. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise.

For a more detailed discussion of these factors, see the information under the captions Risk Factors and Managements Discussion and Analysis of Financial Condition and Results of Operations in our most recent Annual Report on Form 10-K filed with the SEC and in subsequent reports filed with the SEC.

TOLL BROTHERS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands)

TOLL BROTHERS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except per share data and percentages) (Unaudited)

TOLL BROTHERS, INC. AND SUBSIDIARIES SUPPLEMENTAL DATA (Amounts in thousands) (unaudited)

Inventory at October31, 2020 and October31, 2019 consisted of the following (amounts in thousands):

Toll Brothers operates in two segments: Traditional Home Building and Urban Infill ("City Living"). Within Traditional Home Building, Toll operates in five geographic segments. As previously reported, during the first quarter of FY 2020, management realigned certain of the states falling within its five home building regions. Within Traditional Home Building, the Company operates in the following five geographic segments, with current operations in the states listed below:

The realignment did not have any impact on the Companys consolidated financial position, results of operations, earnings per share or cash flows for the periods presented. Prior period results have been recast to conform with the Companys current segments in the tables below:

Unconsolidated entities:

Information related to revenues and contracts of entities in which we have an interest for the three-month and twelve-month periods ended October31, 2020 and 2019, and for backlog at October31, 2020 and 2019 is as follows:

RECONCILIATION OF NON-GAAP MEASURES

This press release contains, and Company managements discussion of the results presented in this press release may include, information about the Companys adjusted homes sales gross margin and the Companys net debt-to-capital ratio.

These two measures are non-GAAP financial measures which are not calculated in accordance with generally accepted accounting principles (GAAP). These non-GAAP financial measures should not be considered a substitute for, or superior to, the comparable GAAP financial measures, and may be different from non-GAAP measures used by other companies in the home building business.

The Companys management considers these non-GAAP financial measures as we make operating and strategic decisions and evaluate our performance, including against other home builders that may use similar non-GAAP financial measures. The Companys management believes these non-GAAP financial measures are useful to investors in understanding our operations and leverage and may be helpful in comparing the Company to other home builders to the extent they provide similar information.

Adjusted Home Sales Gross Margin The following table reconciles the Companys homes sales gross margin as a percentage of homes sale revenues (calculated in accordance with GAAP) to the Companys adjusted homes sales gross margin (a non-GAAP financial measure). Adjusted homes sales gross margin is calculated as (i) homes sales gross margin plus interest recognized in homes sales cost of revenues plus inventory write-downs recognized in home sales cost of revenues divided by (ii) homes sale revenues.

Adjusted Home Sales Gross Margin Reconciliation (Amounts in thousands, except percentages)

The Companys management believes adjusted home sales gross margin is a useful financial measure to investors because it allows them to evaluate the performance of our home building operations without the often varying effects of capitalized interest costs and inventory impairments. The use of adjusted home sales gross margin also assists the Companys management in assessing the profitability of our home building operations and making strategic decisions regarding community location and product mix.

Forward-looking Adjusted Homes Sales Gross MarginThe Company has not provided projected first quarter and full FY 2021 homes sales gross margin or a GAAP reconciliation for forward-looking adjusted homes sales gross margin because such measure cannot be provided without unreasonable efforts on a forward-looking basis, since inventory write-downs are based on future activity and observation and therefore cannot be projected for the first quarter and full FY 2021. The variability of these charges may have a potentially unpredictable, and potentially significant, impact on our first quarter and full FY 2021 homes sales gross margin.

Net Debt-to-Capital Ratio The following table reconciles the Companys ratio of debt to capital (calculated in accordance with GAAP) to the Companys net debt-to-capital ratio (a non-GAAP financial measure). The net debt-to-capital ratio is calculated as (i) total debt minus mortgage warehouse loans minus cash and cash equivalents divided by (ii) total debt minus mortgage warehouse loans minus cash and cash equivalents plus stockholders equity.

Net Debt-to-Capital Ratio Reconciliation (Amounts in thousands, except percentages)

The Companys management uses the net debt-to-capital ratio as an indicator of its overall leverage and believes it is a useful financial measure to investors in understanding the leverage employed in the Companys operations.

Frederick N. Cooper (215) 938-8312 fcooper@tollbrothers.com

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Toll Brothers Reports FY 2020 4th Quarter Results - GlobeNewswire