The chief executive of Toll Brothers Inc., the nation's largest luxury-home builder, said Wednesday the housing industry is in a "depression" and any recovery could be two or three years away.
In candid remarks at the JPMorgan Basics & Industrials Conference a day after reporting a second-quarter loss, Robert Toll said he's not ready to call a bottom yet since the housing market could still get worse.
"Can the market go down another ten or twenty percent? Sure," said Toll, whose Horsham-based company will sit on cash unless a bargain land deal comes along.
He said the current housing crisis is the worst he's seen since the mid-1970s, but back then the decline was relatively short-lived. The current downturn started in late 2005.
"Maybe '74 and '75 was just as bad, but it was so short," Toll said.
Wednesday, June 11, 2008
Toll Brothers Suffering from Depression
Robert Toll, the CEO of Toll Brothers, says the housing industry is in a "depression" and could fall by 10-20%. This comes from last week: