Hovnanian claims 2100 sales during 3-day sales event

[Sandi Egan]

Hovnanian Enterprises, Inc., a leading national homebuilder, announced preliminary results for its “Deal of the Century” nationwide sales campaign, that occurred from September 14th through September 16th in the Company’s residential communities across the country. Over the course of the three-day event, the Company reported more than 2,100 gross sales including more than 1,700 contracts and more than 400 sales deposits. Due to the overwhelming number of customers who visited our communities during the 72 hour sales event and strong demand for our homes, our sales staff in some of our community locations only had enough time to take deposits from our customers rather than completing the more extensive process of taking contracts.

http://biz.yahoo.com/prnews/070917/nem106.html?.v=14

Some of the contracts might fall out of escrow, but still pretty impressive – I expected much worse results.

[desmond]

If you want an oversized new house with lots of overpriced “extras” I think this is the best time to buy. When the current phase, or next couple at most, are built count on either smaller houses, or the same house with much fewer amenities.

[waiting hawk]

Across the USA. 2100 minus millions is what?

[TheBreeze]

How many people that bought from HOV in the past month will now cancel their contracts? How many people that bought in the last year will try to get a rebate from HOV or will just walk away from their home — especially if they were an “investor”? How many people will buy at full price between now and the end of the year? How many people will be willing to buy at full price next year?

[LA_Renter]

This was discussed on CNBC today and they indicated that HOV really dropped their pants on this sale. They priced according to prevailing market / credit realities and moved product. Go figure.

[cr]

Ara has been on all the news channels, for this revolutionary idea of cutting prices.

This is a good sign, though I personally think many of the 2100 are speculative, and may fall through, this is certainly a sign of things to come. Now is a great time to wait for the over correction.

Just came across this BTW – http://www.khovsucks.com/

[eyePod]

That is an interesting piece of sales pitch. How many homes are normally sold, ie YOY? (oops no data) How much did they cut prices? (oops no data)

[wawawa]

When they close the escrow then it is sold.

[stansd]

Found this snippet on an article in thestreet.com

“Hovnanian said Monday that it recorded more than 2,100 gross sales over the weekend — 1,700 of which were contracts and 400 were sales deposits. In comparison, the company recorded just 3,906 gross orders for its entire third quarter, which ended July 31.”

I’m sure the 3rd quarter sucked, and I know they borrowed from the past two weeks and at least the next two…still, 2,100 strikes me as pretty impressive in that context.

What I want to know, though…next time they have an even deeper sale, what the heck do they call it?

A few suggestions:

Deal of the millenium
Super Deal of the Century
Deal of the Century part deux
Going out of business sale
Liquidation
For whom the bell “Toll”s sale

[cyphire]

Ummmmmm….

Don’t these people need to get mortgages???? LOL

[Alex_angel]

A price cut in California from $730 to $690 is not that big of a deal but in some bodunk area where they dropped from $230k to $190k is a HUGE deal. Did it say where the majority of these 2100 sales were?

[stansd]

It didn’t say where they were.

Stan

[Anonymous]

Here is another link to news about this ‘event’:

http://www.latimes.com/business/la-fi-homes18sep18,1,5837243.story?coll=la-headlines-business&ctrack=1&cset=true

‘”The high level of traffic we saw in our sales offices and models over the weekend and over the past several weeks convinces us that there are interested buyers in the market today,” he said. “However, with all of the negative publicity about the housing market, many home buyers were hesitant to buy because they worried that even lower prices might be offered later.”

The sales promotion dropped prices by as much as 25%, with the largest discounts typically offered on the most expensive homes.

Such discounts included a three-bedroom condominium by the Hudson River in West New York, which was reduced $240,000, or 22%, to $862,000. A 25% discount was being offered on a two-bedroom home in Jackson Township, N.J., which lowered its price tag to $300,501.’

— Looks like there were some pretty substantial price cuts. Hopefully this is just the beginning…

[LA_Renter]

When the rubber meets the road home builders can lower their price. They are at the point of do or die. This is a very essential part of the correction. I imagine this event will allow other home builders to follow suit or go out of business. Things like this are a nightmare to the existing home market at least from the sellers point of view. It’s music to my ears.

[temeculaguy]

I am not suprised this worked, it was exactly what was needed and the rest of the industry will realize why they haven’t been selling homes BECAUSE THEY ARE OVERPRICED. HOV took a stab at lowering the prices 20% and the buyers responded, now what will the rest of the market do?

[Author]

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