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.

[Anonymous]

It always amazed me how people point out the negative with sites like khovsucks but never point out the positive places like http://www.khov4newhomes.com

Homebuilding is a tricky business, with such a complex system like a home there are bound to be issues from time to time. However if everybody’s house was falling apart or rotting like some of these sites make it sound, wouldn’t there be riots in the streets?

I appreciate your cheering on the price cuts, as a recent college graduate making an above average salary it is a challenging path to home ownership. If you have no home to sell that gained huge percentages over the years, you are left jumping in at such a huge disadvantage. Had you bought a house 5 or 10 years ago you’d have paid what 1/2? Have salaries doubled in that timeframe? Not quite. I think this whole mortgage mess that is going on is an issue with society itself. As long as we are paying the few several hundred thousand dollar salaries and the fewer several million dollar salaries and then what? The rest of us are left to struggle on the 30-40k average? There’s a severe deficit in fairness that is building and I really hope there is change on the horizon.

[sdrealtor]

but, but, but, but…….

[HappyHouseHunting]

“Donald R. Horton, Chairman of the Board, said, ‘Market conditions remained challenging in our December quarter as inventory levels of both new and existing homes remained high while pricing remained very competitive. Lending standards continue to be more restrictive than during the previous year, and buyers continued to approach the home buying decision cautiously. We expect the housing environment to remain challenging.’”

“The Company’s cancellation rate (cancelled sales orders divided by gross sales orders) for the first quarter of fiscal 2008 was 44%.”

It keeps getting better and better.

[cr]

giantveggie – welcome.

That link was simply one of the first links I came across and I thought it was ironic. I have no opinion on the quality of their homes, simply an opinion that prices are still overpriced.

I find it comical that Hov blames tighter lending standards for homes not selling – hard evidence that the record number of high volume sales (and inflated prices) was only due to loose lending – however, aren’t these the standards that should have been in place all along?

[cr]

giantveggie – welcome.

That link was simply one of the first links I came across and I thought it was ironic. I have no opinion on the quality of their homes, simply an opinion that prices are still overpriced.

I find it comical that Hov blames tighter lending standards for homes not selling – hard evidence that the record number of high volume sales (and inflated prices) was only due to loose lending – however, aren’t these the standards that should have been in place all along?

[cr]

giantveggie – welcome.

That link was simply one of the first links I came across and I thought it was ironic. I have no opinion on the quality of their homes, simply an opinion that prices are still overpriced.

I find it comical that Hov blames tighter lending standards for homes not selling – hard evidence that the record number of high volume sales (and inflated prices) was only due to loose lending – however, aren’t these the standards that should have been in place all along?

[cr]

giantveggie – welcome.

That link was simply one of the first links I came across and I thought it was ironic. I have no opinion on the quality of their homes, simply an opinion that prices are still overpriced.

I find it comical that Hov blames tighter lending standards for homes not selling – hard evidence that the record number of high volume sales (and inflated prices) was only due to loose lending – however, aren’t these the standards that should have been in place all along?

[cr]

giantveggie – welcome.

That link was simply one of the first links I came across and I thought it was ironic. I have no opinion on the quality of their homes, simply an opinion that prices are still overpriced.

I find it comical that Hov blames tighter lending standards for homes not selling – hard evidence that the record number of high volume sales (and inflated prices) was only due to loose lending – however, aren’t these the standards that should have been in place all along?

[HappyHouseHunting]

“Donald R. Horton, Chairman of the Board, said, ‘Market conditions remained challenging in our December quarter as inventory levels of both new and existing homes remained high while pricing remained very competitive. Lending standards continue to be more restrictive than during the previous year, and buyers continued to approach the home buying decision cautiously. We expect the housing environment to remain challenging.’”

“The Company’s cancellation rate (cancelled sales orders divided by gross sales orders) for the first quarter of fiscal 2008 was 44%.”

It keeps getting better and better.

[HappyHouseHunting]

“Donald R. Horton, Chairman of the Board, said, ‘Market conditions remained challenging in our December quarter as inventory levels of both new and existing homes remained high while pricing remained very competitive. Lending standards continue to be more restrictive than during the previous year, and buyers continued to approach the home buying decision cautiously. We expect the housing environment to remain challenging.’”

“The Company’s cancellation rate (cancelled sales orders divided by gross sales orders) for the first quarter of fiscal 2008 was 44%.”

It keeps getting better and better.

[HappyHouseHunting]

“Donald R. Horton, Chairman of the Board, said, ‘Market conditions remained challenging in our December quarter as inventory levels of both new and existing homes remained high while pricing remained very competitive. Lending standards continue to be more restrictive than during the previous year, and buyers continued to approach the home buying decision cautiously. We expect the housing environment to remain challenging.’”

“The Company’s cancellation rate (cancelled sales orders divided by gross sales orders) for the first quarter of fiscal 2008 was 44%.”

It keeps getting better and better.

[HappyHouseHunting]

“Donald R. Horton, Chairman of the Board, said, ‘Market conditions remained challenging in our December quarter as inventory levels of both new and existing homes remained high while pricing remained very competitive. Lending standards continue to be more restrictive than during the previous year, and buyers continued to approach the home buying decision cautiously. We expect the housing environment to remain challenging.’”

“The Company’s cancellation rate (cancelled sales orders divided by gross sales orders) for the first quarter of fiscal 2008 was 44%.”

It keeps getting better and better.

[sdrealtor]

but, but, but, but…….

[sdrealtor]

but, but, but, but…….

[sdrealtor]

but, but, but, but…….

[sdrealtor]

but, but, but, but…….

[Anonymous]

It always amazed me how people point out the negative with sites like khovsucks but never point out the positive places like http://www.khov4newhomes.com

Homebuilding is a tricky business, with such a complex system like a home there are bound to be issues from time to time. However if everybody’s house was falling apart or rotting like some of these sites make it sound, wouldn’t there be riots in the streets?

I appreciate your cheering on the price cuts, as a recent college graduate making an above average salary it is a challenging path to home ownership. If you have no home to sell that gained huge percentages over the years, you are left jumping in at such a huge disadvantage. Had you bought a house 5 or 10 years ago you’d have paid what 1/2? Have salaries doubled in that timeframe? Not quite. I think this whole mortgage mess that is going on is an issue with society itself. As long as we are paying the few several hundred thousand dollar salaries and the fewer several million dollar salaries and then what? The rest of us are left to struggle on the 30-40k average? There’s a severe deficit in fairness that is building and I really hope there is change on the horizon.

[Anonymous]

It always amazed me how people point out the negative with sites like khovsucks but never point out the positive places like http://www.khov4newhomes.com

Homebuilding is a tricky business, with such a complex system like a home there are bound to be issues from time to time. However if everybody’s house was falling apart or rotting like some of these sites make it sound, wouldn’t there be riots in the streets?

I appreciate your cheering on the price cuts, as a recent college graduate making an above average salary it is a challenging path to home ownership. If you have no home to sell that gained huge percentages over the years, you are left jumping in at such a huge disadvantage. Had you bought a house 5 or 10 years ago you’d have paid what 1/2? Have salaries doubled in that timeframe? Not quite. I think this whole mortgage mess that is going on is an issue with society itself. As long as we are paying the few several hundred thousand dollar salaries and the fewer several million dollar salaries and then what? The rest of us are left to struggle on the 30-40k average? There’s a severe deficit in fairness that is building and I really hope there is change on the horizon.

[Anonymous]

It always amazed me how people point out the negative with sites like khovsucks but never point out the positive places like http://www.khov4newhomes.com

Homebuilding is a tricky business, with such a complex system like a home there are bound to be issues from time to time. However if everybody’s house was falling apart or rotting like some of these sites make it sound, wouldn’t there be riots in the streets?

I appreciate your cheering on the price cuts, as a recent college graduate making an above average salary it is a challenging path to home ownership. If you have no home to sell that gained huge percentages over the years, you are left jumping in at such a huge disadvantage. Had you bought a house 5 or 10 years ago you’d have paid what 1/2? Have salaries doubled in that timeframe? Not quite. I think this whole mortgage mess that is going on is an issue with society itself. As long as we are paying the few several hundred thousand dollar salaries and the fewer several million dollar salaries and then what? The rest of us are left to struggle on the 30-40k average? There’s a severe deficit in fairness that is building and I really hope there is change on the horizon.

[Anonymous]

It always amazed me how people point out the negative with sites like khovsucks but never point out the positive places like http://www.khov4newhomes.com

Homebuilding is a tricky business, with such a complex system like a home there are bound to be issues from time to time. However if everybody’s house was falling apart or rotting like some of these sites make it sound, wouldn’t there be riots in the streets?

I appreciate your cheering on the price cuts, as a recent college graduate making an above average salary it is a challenging path to home ownership. If you have no home to sell that gained huge percentages over the years, you are left jumping in at such a huge disadvantage. Had you bought a house 5 or 10 years ago you’d have paid what 1/2? Have salaries doubled in that timeframe? Not quite. I think this whole mortgage mess that is going on is an issue with society itself. As long as we are paying the few several hundred thousand dollar salaries and the fewer several million dollar salaries and then what? The rest of us are left to struggle on the 30-40k average? There’s a severe deficit in fairness that is building and I really hope there is change on the horizon.

[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?

[Ex-SD]

Two big facts that are missing from the sales numbers are:
1. How many homes were sold in each state that they do business?
2. What was the total dollar amount of sales per state?

I would really like to know how many homes and $$$ were generated from CA sales.

Since they build homes in many states and areas that are not bubble markets that did not have the massive, run-up in prices like CA.
This means that the homes that they sell in non-bubble markets have to be priced commensurate (or better) with other homes that are for sale in their respective markets or they won’t sell. In South Carolina, a median priced home relates directly to median income. If it didn’t, anyone attempting to sell a home would be wasting their time. This basic fundamental needs to return to the CA housing market.

[Author]

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