Toll Brothers Inc (NYSE:TOL) beat both top and bottomline estimates in the April-ending Q2, as the homebuilder said it sold more homes and its orders rose. TOL stock is up 2.6% this morning in pre-market activity.

The Horsham, Pennsylvania-based company said net income rose to $124.6 million, or 73 cents per share, versus $89.1 million, or 51 cents per share, a year earlier, according to a press release. Revenue rose 22.2% to $1.36 billion. Analyst averages were for revenue of $1.27 billion and earnings of 63 cents a share.

TOL, which has been building luxury homes for more than 50 years, said it expects to sell between 6,950 and 7,450 homes in fiscal 2017, up from its previous forecast of 6,700 to 7,500 homes. The government last week said unexpected declines in U.S. new-home construction and building permits in April indicate the market is off to a weak start this quarter.

“This was the best spring selling season we have had in over 10 years,” CEO Douglas Yearley said.

The number of homes Toll Brothers sold rose to 1,638 from 1,304 in the quarter ended April 30. The average price of homes sold decreased to $832,400 from $855,500 a year earlier, partly as it rolled out a new line of lower priced homes, T-Select, to cater to millennials starting families, the company said.

Zacks Investment Research earlier this year noted that single family housing has become the primary growth catalyst for the homebuilding sector. Such a trend is likely to continue later this year, what with mortgage rates still at appreciably low levels and demand outstripping supply.

TOL stock has gained almost 23% this year, just shy of gains made in the Dow Jones U.S. Home Construction Index (INDEXDJX:DJUSHB), which is up 25.6% in the period.