So much for the sale of the century...

NEW -> Contingent Buyer Assistance Program
<p>As a follow up to optimu's original post.... things do not look good for the Hov man. (I think I will call Ara "the Hov" from now on.)</p>

<p><a href="http://www.cnbc.com/id/21651824">www.cnbc.com/id/21651824</a></p>

<p class="textBodyBlack">"The Red Bank, N.J.-based company said cancellations for the quarter that ended Oct. 31, were 40 percent of gross contracts, up from 35 percent in the previous quarter as well as the year-ago quarter. </p>

<p class="textBodyBlack"><strong>Hovnanian blamed the higher cancellation rate on the inability of some customers to obtain loans due to the tightening of mortgage underwriting standards. </strong></p>

<p class="textBodyBlack">The company said its contract backlog at the end of October, excluding unconsolidated joint ventures, was 5,938 homes, down 30 percent from last year." </p>

<p class="textBodyBlack">Really, I have not heard about this "credit tightening" which you speak of. . .</p>
 
Some more price cuts could be ahead for Hov. <a href="http://www.thestreet.com/_yahoo/newsanalysis/homebuildersconstruction/10388571.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA">From thestreet.com</a>:





<p>"Some analysts now expect the Red Bank, N.J., homebuilder to implement another round of steep price cuts to clear its large inventory of houses. More than half of Hovnanian's orders in the recent quarter came during the company's heavily hyped "Deal of the Century" weekend sale.





The results were better than expected, but more pain could lie ahead, according to Bank of America analyst Daniel Oppenheim. He expected a 25% year-over-year decline in orders.





"Sales likely fizzled after Hovnanian <strong>attempted to pull away</strong> incentives from its 'Deal of the Century' promotions the weekend of Sept. 14-16," Oppenheim said in a research note. "














</p>
 
<p>The Hov is back at it again. . .how many sides does his mouth have?</p>

<p class="textBodyBlack">"Anyway, Ara Hovnanian...is trying to make the case that this housing recession is going to turn around pretty quickly. </p>

<p class="textBodyBlack">Mr. Hovnanian, whom I respect because he’s not afraid to talk about this stuff on our air, spent much of his presentation comparing today’s housing downturn to previous corrections. <em>“If you look at the years where we had sharp downward corrections...the ’75 and ‘81 period, the good news is the corollary is sharp upward correction afterwards.”</em> He says that the absence, so far, of a wider economic recession bodes well, and household formation is still climbing with demand continuing to increase. He says he believes we’re seeing a trough in starts, based, again, on previous cycles." </p>

<p><a href="http://www.cnbc.com/id/21654400">www.cnbc.com/id/21654400</a></p>
 
Wasn't Ara Hovnanian the one saying builders shouldn't be discounting their prices because it adds to the "perception" that there's a problem? I think he said that 6 or so months ago.
 
No!!!!!!!!!!!!!!!!! Jw. . . you are going to make me do a history of the Hov's flip-flopping. . .must resist urge...need to go home to eat dinner with wife.
 
Think about it... Why in the world would you buy a house for it's "regular" price after it's been put on "sale" by the builder?





If the house is 500k for example, and it was on sale two weekends ago for 430k, there is NO FREAKING WAY I'd pay the 500k. I'd either wait for it to be discounted to that level (or even further) again, or I simply wouldn't buy it.





Once you sell an asset that costly for a certain cost, that's what it's worth.
 
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