Investors have been facing an uphill battle with equity markets as fears of an impending recession linger. However, the housing market — which suffered the most during the 2008 financial crisis — is unaffected and on its way to recovery, Toll Brothers (NYSE: TOL)' CEO, Douglas Yearley, told CNBC on Tuesday.
Still, market watchers remain concerned that there may be slowing growth in the luxury market. While Yearley acknowledged those concerns, he said on " Closing Bell " that the company's business is good.
The largest U.S. luxury homebuilder on Tuesday reported an 8.8 percent rise in fiscal first-quarter revenue as it sold homes at higher prices.
The company's revenue climbed to $928.6 million in the three months ended Jan. 31, from $853.5 million a year earlier. The company's net income, however, fell to $73.2 million from $81.3 million.
Toll Brothers, whose homes can cost more than $2 million, said orders rose 17.6 percent to 1,250 homes. "Our sales right now are at the highest price point we ever had," Yearley said.
"Overall people feel good; it's just taking a little bit longer for them to step up and make the buying decision," he noted.
The Federal Reserve Bank of New York's 2015 fourth-quarter household debt and credit report showed mortgage delinquencies continued improving for the fifth year in a row. The bank said that mortgages balances were roughly flat for the quarter. At the same time, aggregate household debt balances saw a slight increase. Still, household debt remains 4.4 percent under the 2008 third-quarter peak of $12.68 trillion.
Yearley says that the real estate company does not foresee a recession.
"The housing market is in good shape and what's going on in the equity market and the global economy — we are just not seeing," he said.
— Reuters contributed to this report.
More From CNBC
-
Top News and Analysis
-
Latest News Video
-
Personal Finance