In response, Toll has raised prices this quarter about $26,000 per home on average, he said.
With Toll's backlog up 69 percent in dollars ($2.53 billion) and 52 percent (3,655) in units, and "with our community count increasing throughout fiscal year 2014, we expect continued growth over the next few years," he said.
The average price of homes in the backlog is $693,000, compared with $624,000 in 2012's second quarter.
Toll is building in 225 communities in 19 states.
The average price of homes delivered climbed 3.6 percent in the quarter to $577,000 from $557,000 in 2012's second quarter.
Net signed contracts rose 57 percent, to $1.19 billion, from the 2012 quarter, Toll reported. Revenue climbed 38 percent to $516 million.
Toll earned $24.7 million, or 14 cents per share, in the three months ended April 30, compared with net income of $16.9 million, or 10 cents per share, in the 2012 quarter.
Analysts surveyed by Bloomberg had expected the company to earn just seven cents a share.
Earnings in this year's quarter were reduced by a $16.3 million income-tax expense. Last year's second-quarter earnings were boosted by a $1.2 million income-tax benefit, the company said.
Executive chairman Robert I. Toll said, "For those builders who have the capital to buy land and build homes it is a very good time.
"While up significantly from the bottom, April 2013 industrywide total annualized housing starts were approximately 853,000, just 55 percent of the 1.5 million houses started annually, on average, between 1987 and 2006," he said.
"With new home production still well below the volumes required to meet projected demand based on history, population growth and the pace of current household formations, we believe we and the industry have lots of room to grow," he said.
Contact Alan J. Heavens
at 215-854-2472, email@example.com,
or @alheavens at Twitter.