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The housing market is in need of homes for sale?and Toll Brothers is benefiting. Shares of the luxury homebuilder were higher on Wednesday after the company reported record contracts in the second quarter that exceeded analyst estimates.

On its earnings call Wednesday, the luxury home builder cited the dearth of homes for sale as one reason for its second-quarter earnings beat in which it saw record revenues for the second quarter, improved margins, and 3,487 net signed contracts?up 85% from the year prior and a record high,...

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